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Azure

Microsoft's cloud platform, preliminarily designated a DMA gatekeeper alongside AWS in June 2026.

The European Commission provisionally designated Azure a Digital Markets Act gatekeeper on 25 June 2026, alongside AWS, after opening a formal cloud investigation into both platforms in October 2025.

Last refreshed: 22 September 2026 · Appears in 1 active topic

Key Question

Is Azure locking European cloud customers in via fees the EU is now probing?

Timeline for Azure

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Background

Azure is Microsoft's cloud computing platform, the second-largest cloud provider globally behind AWS. It offers EU data centres in Ireland, the Netherlands, Germany and France, alongside Microsoft's Dublin-based EMEA headquarters.

As a US-incorporated company, Azure remains subject to US CLOUD Act jurisdiction regardless of where its EU customers' data physically sits, a structural concern for European governments and regulated industries pursuing data sovereignty. That concern sits behind the European Commission's Digital Markets Act investigation into Azure, opened alongside a parallel probe into AWS, and behind a wider push by EU institutions and member states to develop sovereign cloud alternatives outside Microsoft, Amazon and Google's combined market dominance.

Key Issues
DMA gatekeeper probe

Azure faces a DMA gatekeeper finding

The European Commission opened a formal Digital Markets Act investigation into Azure in October 2025, running alongside a parallel probe into AWS. By April 2026 the Commission said the DMA framework remained fit for purpose while it kept cloud competition under active scrutiny.

Contested practices under review include egress fees, contractual lock-in and interoperability barriers that raise the cost of switching cloud providers. Azure operates EU data centres in Ireland, the Netherlands, Germany and France, but as a US-incorporated platform it remains subject to US CLOUD Act jurisdiction regardless of where the data physically sits, the concern driving the wider investigation.

Common Questions
Why is the EU investigating Microsoft Azure?
The European Commission opened a DMA cloud probe in 2025 targeting Azure and AWS for practices including egress fees and contractual barriers that make it hard for customers to switch providers.Source: European Commission DMA probe
What is Azure egress fee and why does Europe care?
Egress fees are charges Microsoft levies when data leaves Azure. Critics argue they create artificial lock-in that prevents EU organisations from moving to European cloud providers.Source: EU Cloud Switch Code of Conduct
Is Azure compliant with GDPR and EU data rules?
Azure offers EU Data Boundary commitments, but the CLOUD Act means US authorities can compel Microsoft to produce customer data regardless of where it is stored, a persistent sovereignty concern.Source: Microsoft EU Data Boundary documentation
What European cloud alternatives exist to Azure?
Sovereign alternatives include OVHcloud, Hetzner, Deutsche Telekom Open Telekom Cloud, and the GAIA-X-aligned offerings, though none yet match Azure at full enterprise scale.Source: ECFR / EU cloud market analysis
Has the EU designated Microsoft Azure a DMA gatekeeper?
Not yet formally. The European Commission gave Microsoft its preliminary view on 25 June 2026 that Azure should be designated, alongside AWS; a final decision is expected by the end of 2026.Source: European Commission, 25 June 2026
Why is Azure still subject to the US CLOUD Act in Europe?
Azure is operated by Microsoft, a US-incorporated company, so US authorities can compel data disclosure under the CLOUD Act even when the data is stored in an EU data centre.
Source Material
Commission reaches preliminary position that Amazon's and Microsoft's market leading cloud services should be designated under the DMA