Amazon and Microsoft Face EU Cloud Probe, Sparking Market Concerns
Amazon shares declined nearly 1% intraday after European regulators launched an investigation into AWS under the Digital Markets Act. Microsoft Azure faces parallel scrutiny as authorities reassess whether cloud platforms qualify as market gatekeepers.
Recent outages at AWS and Azure have amplified regulatory concerns. A 15-hour AWS disruption last month impacted major clients including Apple and McDonald's, highlighting systemic risks of concentrated cloud dependence.
The European Commission aims to finalize cloud sector regulations within 18 months, potentially imposing new restrictions on dominant providers. Both companies previously avoided DMA gatekeeper designation due to their enterprise user bases, but regulators now question whether they control critical access points between businesses and consumers.
