Microsoft and Amazon are facing scrutiny in the United Kingdom over allegations of hindering customer access to multiple suppliers of essential cloud services.
The Competition and Markets Authority (CMA), the country’s antitrust regulator, announced on Thursday that it had initiated an investigation into the UK’s cloud infrastructure services market to assess whether there are anti-competitive practices at play, reported CNN.
Cloud computing giants like Microsoft and Amazon Web Services (AWS) utilize global data centers to offer remote access to computing resources and storage. This infrastructure serves as the backbone for the development and operation of various software applications, including widely used platforms like Gmail and Dropbox.
Related: UK Probes Amazon & Microsoft Cloud Services
The CMA’s decision to investigate comes in response to a report from Britain’s media and communications regulator, Ofcom, which revealed that the cloud infrastructure supply in the UK is heavily concentrated, with limited competition.
Sarah Cardell, CEO of the CMA, expressed support for Ofcom’s referral of public cloud infrastructure services to their organization for thorough examination, stating, “This is a market valued at £7.5 billion, underpinning a wide range of online services, from social media to foundational artificial intelligence models. Many businesses now rely entirely on cloud services, making robust competition within this market indispensable.”
The investigation is set to shed light on whether Microsoft, Amazon, and other players in the UK cloud services sector are engaged in practices that hinder fair competition and restrict consumer choice.
Source: Edition CNN
Featured News
Google and South Carolina Clash Over State Records Demand
May 8, 2024 by
CPI
Telefonica Germany Teams Up with Amazon Web Services to Migrate 5G Customers
May 8, 2024 by
CPI
Federal Judge Grants $7.4 Million Settlement in Pork Price-Fixing Case
May 8, 2024 by
CPI
Wilson Sonsini Bolsters Antitrust and Competition Practice with Key Partner Returns
May 8, 2024 by
CPI
EU to Scrutinize Telecom Italia’s Network Sale to KKR
May 8, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI