Cloudy Logic: The DMA’s Search for a Gatekeeper

Key Takeaways

• EU admits cloud services miss DMA gatekeeper thresholds
• Cloud computing lacks consumer‑facing gate, unlike e‑commerce platforms
• AWS, Azure, Google hold ~70% EU market, no single dominant player
• Existing EU tools (Article 102, Data Act) already address cloud competition
• DMA review due May 2026 may remove cloud from core platform list

Pulse Analysis

The Digital Markets Act was conceived as a blunt instrument to curb the power of large consumer‑oriented platforms that act as intermediaries between end users and businesses. Its gatekeeper criteria focus on metrics such as monthly active users and market dominance, assumptions that fit social networks, app stores, and search engines. Cloud providers, however, deliver B2B infrastructure—computing power, storage, and software—to corporate clients, lacking the consumer‑facing gateway the DMA seeks to regulate. By forcing cloud services into a framework designed for entirely different market dynamics, the Commission reveals a fundamental misalignment between policy intent and economic reality.

European cloud market data underscores this misfit. Amazon Web Services, Microsoft Azure, and Google Cloud together control roughly 70% of the EU market, with individual shares of 32%, 23% and 10% respectively. No single provider approaches the 40% dominance threshold traditionally associated with tipping points under EU competition law, and market shares have been fluid, with AWS losing ground while Azure and Google gain. The EU already possesses targeted mechanisms—Article 102 of the TFEU for abuse of dominance and the Data Act, effective from September 2025, which mandates interoperability and curbs unfair contract terms—to address any genuine competition concerns in cloud services.

The practical consequence is regulatory redundancy and uncertainty. Companies may face overlapping compliance obligations, higher legal costs, and ambiguous enforcement signals, especially for smaller European firms the DMA purports to protect. The upcoming DMA review slated for May 2026 offers a critical juncture to reassess the inclusion of cloud services among core platform services. A decision to excise cloud from the DMA could streamline the regulatory landscape, align oversight with market realities, and prevent the costly overreach that has characterized the Act’s early implementation.