--- title: "Amazon and Microsoft Cloud Businesses Could Face Tougher EU Rules as Soon as November" type: "News" locale: "en" url: "https://longbridge.com/en/news/300809432.md" description: "Amazon Web Services and Microsoft Azure may face stricter EU regulations under the Digital Markets Act as potential 'gatekeepers,' with a final decision expected by November. This designation could impose new rules on interoperability, customer switching, and self-preferencing, carrying fines up to 10% of global revenue. Despite regulatory scrutiny, Wall Street maintains Strong Buy ratings for both companies." datetime: "2026-10-02T15:48:43.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/300809432.md) - [en](https://longbridge.com/en/news/300809432.md) - [zh-HK](https://longbridge.com/zh-HK/news/300809432.md) generator: "portal-rs" --- # Amazon and Microsoft Cloud Businesses Could Face Tougher EU Rules as Soon as November Cloud giants Amazon Web Services (AMZN) and Microsoft Azure (MSFT) could soon face tougher European Union rules after regulators moved closer to classifying both services as gatekeepers under the Digital Markets Act. According to *Bloomberg*, a final decision could come as soon as November. If designated, Amazon and software giant Microsoft would have six months to comply with new requirements that could affect how their cloud platforms work with rivals and how easily customers can switch providers. The European Commission said that its review is still underway and that no final decision has been made. Interestingly, the EU has been moving toward this decision for months. In June, regulators reached a preliminary view that AWS and Azure should qualify as gatekeepers. The Commission said that AWS is the largest cloud provider in the EU, while Azure ranks second. Regulators also pointed to high switching costs and the large ecosystems that surround both platforms. Their growing AI businesses have become another factor because access to AI tools increasingly influences which cloud provider companies choose. A gatekeeper designation would therefore put new limits on how Amazon and Microsoft use those advantages. ## **AWS and Azure Could Face New Rules on Customer Lock-In** If the designation becomes final, regulators could require AWS and Azure to make their services work more easily with competing platforms. The rules could also restrict practices that make it difficult for customers to move their data or workloads elsewhere. Self-preferencing, where a company gives its own services an advantage over competing products, could face additional limits. That matters because cloud customers often build large parts of their technology around one provider. Switching later can be expensive and technically difficult. The financial penalties for breaking DMA rules can also be significant. The Commission can fine companies by as much as 10% of worldwide annual revenue for violations. Repeat offenses can carry fines of up to 20%. The EU has already used those powers against other major technology companies. In July, regulators fined Google (GOOGL) €890 million over two DMA violations tied to Google Search and Google Play. Unsurprisingly, Amazon has argued that European cloud customers already have a lot of options to choose from, while Microsoft has said that it continues to work with regulators as the review progresses. ## **Wall Street's Take** Turning to Wall Street, analysts currently give both stocks Strong Buy consensus ratings. Amazon has a $331.82 average price target, while Microsoft's average target stands at $575.91. (See AMZN Stock Forecast). ### Related Stocks - [AMZN.US](https://longbridge.com/en/quote/AMZN.US.md) - [MSFT.US](https://longbridge.com/en/quote/MSFT.US.md) - [AMAA.US](https://longbridge.com/en/quote/AMAA.US.md) - [AMZD.US](https://longbridge.com/en/quote/AMZD.US.md) - [AMZG.US](https://longbridge.com/en/quote/AMZG.US.md) - [AMZO.US](https://longbridge.com/en/quote/AMZO.US.md) - [AMZP.US](https://longbridge.com/en/quote/AMZP.US.md) - [AMZU.US](https://longbridge.com/en/quote/AMZU.US.md) - [AMZW.US](https://longbridge.com/en/quote/AMZW.US.md) - [AMZY.US](https://longbridge.com/en/quote/AMZY.US.md) - [AMZZ.US](https://longbridge.com/en/quote/AMZZ.US.md) - [AZYY.US](https://longbridge.com/en/quote/AZYY.US.md) - [MSFC.US](https://longbridge.com/en/quote/MSFC.US.md) - [MSFD.US](https://longbridge.com/en/quote/MSFD.US.md) - [MSFL.US](https://longbridge.com/en/quote/MSFL.US.md) - [MSFO.US](https://longbridge.com/en/quote/MSFO.US.md) - [MSFU.US](https://longbridge.com/en/quote/MSFU.US.md) - [MSFW.US](https://longbridge.com/en/quote/MSFW.US.md) - [MSFX.US](https://longbridge.com/en/quote/MSFX.US.md) - [MSFY.US](https://longbridge.com/en/quote/MSFY.US.md) - [GOOGL.US](https://longbridge.com/en/quote/GOOGL.US.md) ## Related News & Research - [Analyst Drops Massive Take on Microsoft Stock Over AI's Biggest Fear](https://longbridge.com/en/news/300957233.md) - [Microsoft Sets up a Second AI Paycheck as Copilot Shifts To Pay-Per-Use](https://longbridge.com/en/news/301061530.md) - [Kinsale Capital Group Inc. Buys 2,985 Shares of Microsoft Corporation $MSFT](https://longbridge.com/en/news/300872227.md) - [Microsoft Corporation $MSFT Holdings Decreased by Orca Investment Management LLC](https://longbridge.com/en/news/300908699.md) - [Azure maintenance mess disrupted hybrid clouds, VPNs, cloudy VMware services](https://longbridge.com/en/news/300692323.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**