On June 25, the European Commission told Amazon and Microsoft its preliminary view that AWS and Azure should be designated gatekeepers under the Digital Markets Act. It is the first time cloud infrastructure has been targeted under the regulation. Brussels is extending DMA reach from consumer platforms toward the enterprise infrastructure layer that most of European business depends on.
Policy & Regulation
AWS and Azure face DMA gatekeeper designation, cloud infrastructure is next
The Commission's preliminary position, published June 25, finds that AWS and Azure qualify as gatekeepers despite not meeting the DMA's quantitative thresholds for user numbers. Both were designated on qualitative grounds: they function as an important gateway between businesses and their customers in the EU, with entrenched positions that rivals cannot easily contest.
Amazon and Microsoft have until September 2026 to submit written representations and request a hearing. The Commission must issue a final designation decision by January 2027.
Once designated, both hyperscalers would face obligations covering data portability, interoperability with competing cloud services, and fair access terms. Each of those obligations carries substantial compliance and competitive implications for the enterprises built on top of them.
(European Commission) (The Register)
AI Act Omnibus needs Council adoption before August 2
Parliament adopted the Omnibus on June 16 by 423 votes to 57. The Council has not yet formally adopted the same text, and it must do so before August 2, the date when certain obligations for high-risk AI systems were originally due.
The Omnibus delays most of those obligations to 2027 and 2028, but only once the text is published in the Official Journal. If the Council's adoption slips past August 2, companies face a brief legal grey zone where the original rules technically apply. No formal Council adoption date has been confirmed.
(Data Matters Privacy Blog) (artificialintelligenceact.eu)
GDPR enforcement expands to Article 27 failures by non-EU firms
As of June 25, EU data protection authorities are increasingly fining companies outside the EU for failing to appoint an Article 27 representative. The obligation requires non-EU organisations to designate a formal contact point inside the bloc; it has often been overlooked and is now being enforced more actively, both as a standalone violation and as a signal that broader GDPR compliance may be inadequate.
Cumulative GDPR fines now exceed €7.4 billion. For European companies sourcing software or services from non-EU vendors, the pattern matters: a vendor without a proper Article 27 representative is no longer merely technically non-compliant. It is increasingly a fined entity, which changes how procurement due diligence should look.
(IAPP)
Capital & Investment
Stark Defence raises €500M to scale European drone manufacturing
Berlin-based Stark confirmed a €500M late-stage round co-led by Sequoia Capital and Founders Fund on June 23, with the NATO Innovation Fund, Project A, Air Street Capital, and Advent among other backers. The round values Stark at more than €3.5 billion, roughly triple its previous valuation.
Founded in 2024, Stark makes the Virtus loitering munition, a strike drone with a 130km range and up to 90 minutes of flight time. More than 80 per cent of the capital will go into R&D and manufacturing, including new electronic warfare research facilities.
European defence budgets have expanded faster than European industrial capacity can absorb, creating headroom for companies with products that are already field-tested.
Finn reaches unicorn status at €140M Series D
Munich-based car subscription company Finn raised €140M in a Series D on June 24, led by Portage with participation from UVC Partners, Planet First Partners, and Korelya Capital, plus €40M in debt from BC Partners Credit and Runway Growth Capital. The round values Finn at just over €1 billion.
The company serves more than 50,000 subscribers across fossil fuel and electric vehicles from 30-plus manufacturers, generating over €300M in annual recurring revenue. Car subscription sits between ownership and rental in a market where younger European consumers are stepping back from cars and fleet managers are managing emissions exposure more actively.
(Sifted) (electrive.com)
British Business Bank explores a stake in the Scaleup Europe Fund
The British Business Bank has held early discussions with UK government officials about taking a stake in the Scaleup Europe Fund, the €5 billion vehicle managed by EQT following the EIC's selection of the Swedish firm in May. Denmark's EIFO is the anchor LP alongside the European Commission's €1 billion commitment, Novo Holdings, Allianz, and APG. First investments are expected in autumn 2026.
If the discussions advance, a UK state-backed institution would be co-investing through an EU institutional structure for the first time since Brexit. The practical effect for BBB portfolio companies would be access to EU growth capital mechanisms they are currently excluded from by geography.
(Sifted) (European Commission)
One to Watch
The August 2 deadline and what happens if the Council is late
August 2 is when the AI Act's original obligations for certain high-risk systems were due. It is now also the date by which the Council must formally adopt the Omnibus amendments to replace those obligations with the delayed timeline. The two processes are racing each other.
If the Council adopts before August 2, the amended deadlines apply cleanly. If it does not, companies face a window where both the original and amended rules are technically in play. The AI Office has not published guidance on that scenario.
Watch for the Council adoption announcement in July. It will either close this gap or open it.