On Thursday, Britain’s media regulator urged the antitrust authorities to probe Amazon (AMZN.O) and Microsoft’s (MSFT.O) UK cloud market dominance. Ofcom found aspects that made using several cloud vendors harder for UK enterprises.
Ofcom estimated that AWS and Microsoft dominated Britain’s public cloud infrastructure services market in 2022 with 70–80% dominance. Google (GOOGL.O) was their closest rival with 5-10%.
“The CMA (Competition and Markets Authority) will now conduct an independent investigation to determine if there is an adverse effect on competition and whether it should act or recommend others act,” it stated.
Amazon disagrees with Ofcom’s conclusions, calling them “a fundamental misconception of how the IT sector functions, and the services and discounts on offer.”
“Unwarranted intervention could harm IT customers and competition,” a spokeswoman stated. It promised fruitful cooperation with the CMA.
Microsoft pledged to keep the UK cloud business creative and competitive. “We will engage constructively with the CMA,” stated Microsoft.
In April, Ofcom indicated it would urge the competition authority to probe AWS and Microsoft’s actions due to their market positions. Reuters reported Tuesday that Ofcom will seek an antitrust inquiry. UK firms complained to Ofcom that switching cloud providers was too burdensome.
We’re recommending the market to the CMA for additional review to ensure corporate customers continue to benefit from cloud services, said Ofcom Director Fergal Farragher.
The CMA applauded the action, saying many firms depended on cloud services, making competition in the 7.5 billion pound ($9.1 billion) industry crucial.
French antitrust authorities are likewise interested in cloud computing. It warned that such industry practices might limit competition and lead to probes in June.
After CISPE, which includes Amazon, filed a complaint, EU antitrust investigators are also investigating Microsoft’s cloud computing operations. Ofcom’s recommendation showed the need for an open cloud market without vendor lock-in, said Google Vice President Amit Zavery.
“UK government agencies, businesses, and consumers want to move easily across cloud platforms and choose which services best meet their needs,” he said. He added that Google will continue to let its products function on any cloud without penalty.
By April 2025, the CMA will finish its inquiry.
