UK Regulators Launch Deeper Probe into Amazon and Microsoft’s Dominance in Cloud Computing Services
UK regulators have announced a deeper investigation into concerns that Amazon and Microsoft dominate the country’s cloud-computing services industry, which is worth billions of dollars. The Competition and Markets Authority (CMA) will be conducting the probe following an initial review by the UK’s communications regulator, Ofcom.
The CMA’s chief executive, Sarah Cardell, expressed her support for the referral, stating that the cloud services industry in the UK is valued at £7.5 billion ($9.1 billion), and plays a crucial role in supporting online services ranging from social media to artificial intelligence. Cardell emphasized the importance of effective competition in this market, considering that many businesses now heavily rely on cloud services.
The investigation comes after a year-long examination conducted by Ofcom, which identified features that make it difficult for UK businesses to switch and use multiple cloud suppliers. Of particular concern to regulators are Amazon and Microsoft, the market leaders in this sector.
This announcement follows the recent decision by the CMA to drop its objections to Microsoft’s acquisition of video game firm Activision Blizzard. The CMA had initially blocked the deal due to concerns about potential damage to competition in the growing cloud gaming sector. Cloud gaming allows players to purchase games digitally and use different devices for gameplay, rather than being limited to consoles.
The UK regulators’ probe indicates an increasing focus on scrutinizing the dominance of major tech companies, particularly in the cloud services sector. This investigation aims to ensure a fair and competitive market that benefits businesses and consumers alike.
Overall, this development highlights the significance of cloud computing services and the need to maintain a level playing field in this rapidly expanding industry. As businesses and individuals increasingly rely on cloud services for various online activities, it is essential to foster competition and innovation to drive growth and provide the best possible services.