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UK Competition Regulator Pushes Back Cloud Market Report Date for Further Review

By  |  September 19, 2024
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The U.K. Competition and Markets Authority (CMA) has announced a significant extension to its investigation into the country’s cloud market, pushing back the report’s publication date by four months. According to UK Tech News, the new deadline is set for August 4, 2025, a notable shift from the original April 4, 2025 due date.

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    The CMA stated that the delay was necessary to address the complex issues uncovered during the investigation. The regulator cited the need for a more thorough analysis of the market’s dynamics, particularly concerning licensing practices, which were not deeply explored in previous studies by Ofcom. The Inquiry Group noted that additional submissions and evidence received after the initial deadline have also contributed to the need for more time.

    In a related development, Google has criticized Microsoft’s market practices in its recent submission to the CMA. Per UK Tech News, Google accused Microsoft of severely restricting customer choice in the U.K. cloud market through its software licensing practices. Google claims these restrictions could skew the market in Microsoft’s favor and create significant barriers for competitors. The tech giant has urged the CMA to take urgent action to address what it describes as Microsoft’s unfair practices.

    Amazon’s AWS has supported Google’s stance, highlighting a pattern of dissatisfaction among cloud providers and customers with Microsoft’s conduct. AWS criticized Microsoft for imposing practices that could be easily rectified, which it believes unfairly disadvantages other market players.

    Conversely, Microsoft has defended its position, arguing that the CMA’s views do not reflect the rapidly evolving nature of the cloud market. Microsoft contends that the CMA’s emerging perspectives overlook real-world evidence of the market’s dynamism.

    Last October, the CMA raised concerns over the influence of dominant players like Amazon and Microsoft in the cloud sector. The regulator suggested that these companies may be discouraging customers from using smaller providers, while Ofcom highlighted issues such as high exit fees and interoperability barriers that complicate switching between providers.

    An Ofcom study from the previous year revealed that Amazon and Microsoft each hold a significant share of the U.K. cloud market, accounting for 30-40% of total revenues, while Google commands approximately 10%.

    Source: UK Tech News