In the rapidly expanding cloud computing market, Microsoft Azure and Amazon Web Services (AWS) continue to dominate across Europe. But as concerns over market concentration grow, regulators are stepping in. The UK’s Competition and Markets Authority (CMA) has launched investigations that may signal a turning point in how big tech firms operate — and how Europe’s cloud landscape evolves.
So, the question is: Can the CMA really break the duopoly of Microsoft and AWS in European cloud services?
Understanding the Cloud Duopoly in Europe
As of 2025, AWS and Microsoft Azure control approximately 70-80% of the public cloud infrastructure market in Europe, depending on the country. Their dominance stems from:
- Global infrastructure scale
- Established enterprise relationships
- Integrated software ecosystems
- Aggressive pricing and bundling tactics
However, this concentration has triggered increasing scrutiny, particularly around fair access, vendor lock-in, and interoperability — areas where smaller cloud providers often struggle to compete.
Why Is the CMA Investigating Cloud Market Practices?
The CMA’s concern revolves around anti-competitive practices that could restrict choice and innovation in the UK and broader European markets. Some key issues under review include:
- Bundled services: Microsoft’s integration of Azure with other enterprise tools (e.g., Office 365, Teams) may give it an unfair advantage.
- Data portability limitations: Customers face challenges when trying to switch cloud providers due to proprietary systems or exit fees.
- Preferential pricing and discounts: Larger clients receive volume-based incentives that smaller cloud rivals can’t match.
- Interoperability barriers: Smaller providers argue that the dominant players create friction when integrating with third-party tools.
Potential Outcomes: What Could the CMA Do?
While the CMA doesn’t have direct power to break up companies, its actions could reshape the competitive landscape in several ways:
1. Mandate Fairer Contract Terms
The CMA could force cloud giants to adjust licensing or bundling practices that make switching providers more difficult.
2. Increase Interoperability Requirements
New rules may compel Microsoft and AWS to support better data portability and open standards that level the playing field.
3. Enforce Separation of Services
If integration between products is deemed anti-competitive, the CMA might require clearer separation between services like Azure and Microsoft 365.
4. Open the Door for Smaller Providers
Regulatory pressure could give EU-based cloud services like OVHcloud, Deutsche Telekom’s T-Systems, or Scaleway the chance to grow and compete.
Will Other Regulators in Europe Follow the CMA?
The CMA’s investigation could influence regulatory bodies in the EU, especially as digital sovereignty becomes a higher priority. The European Commission is already monitoring cloud service providers under its Digital Markets Act (DMA) and Data Act.
A coordinated regulatory push could result in broader reforms, forcing hyperscalers to change how they operate across the continent.
The Challenges Ahead
Despite growing pressure, Microsoft and AWS have vast resources to adapt or delay change. Their dominance is rooted not just in market tactics, but in decades of infrastructure investment, R&D, and ecosystem loyalty.
Breaking a duopoly isn’t easy — but increasing transparency, reducing vendor lock-in, and supporting open cloud standards are steps in the right direction.
Final Thoughts
Can the CMA break the duopoly of Microsoft and AWS in European cloud services? Not overnight. But its efforts, combined with mounting political and industry pressure, could pave the way for greater cloud diversity, innovation, and fairer market access across Europe.
In a world where cloud computing underpins almost every digital service, competition matters more than ever.
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