EU designates AWS and Azure as gatekeepers despite missed numeric thresholds

This move signals a shift from consumer-facing platform regulation to deeper infrastructure oversight, directly impacting the backend of the global streaming stack. By applying the DMA to cloud, Brussels risks forcing providers to navigate two conflicting regimes—the B2B-focused Data Act and the consumer-centric DMA—which could increase operational costs for streaming services and delay the rollout of advanced AI-driven features in Europe. For the broader ecosystem, this creates a dilemma: while intended to boost competition, the high cost of dual compliance may actually favor well-resourced U.S. giants over smaller European alternatives. Watch for a final Commission decision in October 2026, which will set the enforceable compliance roadmap for cloud infrastructure.

The European Commission's focus on cloud infrastructure coincides with a broader push for digital sovereignty across the continent. Per Reuters in June 2026, the Commission's seven-month investigation highlighted that AWS and Azure serve as critical interfaces for the region's digital future, with their dominance reinforced by growing AI demand. This regulatory pressure is not unique to the EU; the UK's Competition and Markets Authority (CMA) recently concluded a three-year cloud market study in March 2026. According to official reports, the CMA opted to accept voluntary commitments from AWS and Microsoft regarding egress fees and interoperability rather than imposing binding 'Strategic Market Status' designations, reflecting a different approach to the same competitive concerns. At the same time, the European cloud sector is grappling with significant shifts in the virtualization market. Per industry reports from March 2026, the association of European cloud providers, CISPE, filed a competition complaint against Broadcom regarding its VMware licensing policy. The group alleged that price increases of up to 1,500% and the termination of the VMware Cloud Service Provider program posed an 'existential threat' to smaller European firms. These pricing surges have forced many organizations to re-evaluate their infrastructure strategies, with Synergy Research Group data from Q1 2026 showing that while European providers tripled local revenues since 2017, their total market share remained flat at 15% as the overall market expanded. The interplay between these regulatory and commercial shifts creates a volatile environment for enterprise buyers. While AWS and Microsoft maintain their lead—controlling roughly 65-70% of EU cloud revenue as of early 2026—the European Parliament has increasingly raised concerns about 'regulatory complexity.' A report published in late 2025 noted that overlapping laws like the EU AI Act, Data Act, and platform regulation create administrative burdens that could stifle the very innovation they aim to protect. To address these concerns, the EU Tech Sovereignty Package has been proposed to further limit the leverage held by U.S. hyperscalers.