UK regulator warns Amazon and Microsoft cloud dominance harms competition
The UK’s Competition and Markets Authority (CMA) has expressed concern that Amazon and Microsoft’s dominant positions in the cloud computing market are negatively impacting competition. The CMA highlighted that technical and commercial barriers make it difficult for customers to switch providers, further entrenching their market power.
The CMA inquiry group suggested investigating whether Amazon and Microsoft should be designated with Strategic Market Status (SMS) in cloud services. Such a designation would grant the regulator powers to impose specific rules and conditions aimed at improving competition, News.Az reports, citing Reuters.
While Google is the third major cloud services provider, the CMA noted its market share remains significantly smaller than Amazon and Microsoft. However, the CMA also said it will not consider launching new SMS investigations until early next year.
Microsoft responded to the report, stating it “misses the mark again,” pointing to a highly dynamic and competitive cloud market with rapid AI-driven innovation and record investment. The company also criticized the report for overlooking Google, “one of the fastest-growing cloud market participants,” and expressed its intention to work with the CMA’s Digital Markets Unit for a fair outcome that benefits UK customers.
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