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UK Investigates Microsoft and Amazon for Cloud Service Competition

 |  October 5, 2023

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