Amazon and Mircosoft are to face a cloud computing competition probe by the CMA after finding that they dominate the market.
Amazon is to face a cloud computing competition probe.
The tech giant and superstore will, along with software corporation Microsoft,will face investigations conducted by the UK’s Competition and Markets Authority after Ofcom found that the two make up 70-80% of the market for cloud storage systems.
CMA chief executive Sarah Cardell told the BBC: “Many businesses now completely rely on cloud services, making effective competition in this market essential. Strong competition ensures a level playing field so that market power doesn’t end up in the hands of a few players – unlocking the full potential of these rapidly evolving digital markets so that people, businesses, and the UK economy can get the maximum benefits. The CMA’s independent inquiry group will now carry out an investigation to determine whether competition in this market is working well and if not, what action should be taken to address any issues it finds.”
The CMA said it would conclude its investigation by April 2025 and has the power to change market practices or block purchases or even sell off parts of their businesses.
Nicky Stewart, former head of ICT at the Cabinet Office, said: “All credit to Ofcom for addressing the anti-competitive issues such as data egress fees, technical and commercial lock-ins that have damaged and distorted the UK’s growing cloud infrastructure market for too long. It’s imperative that the CMA thoroughly investigates all the deep-seated issues in this critical market which underpins so much of our nation’s digital infrastructure – and that includes anti-competitive licensing.”
Amazon to face cloud computing competition probe
