UK Challenges Cloud Dominance of AWS and Microsoft
Competition Authority Investigates Market Power, Giants Push Back
The UK’s Competition and Markets Authority (CMA) has launched a probe into the dominance of Amazon Web Services (AWS) and Microsoft in the UK’s cloud computing market. The CMA’s investigation suggests a lack of competition, potentially harming innovation and limiting consumer choice. Both tech giants have publicly refuted the CMA's assessment.
- CMA cites concerns over market competitiveness.
- AWS and Microsoft hold significant market share.
- Giants dispute findings, asserting competitive landscape.
- Investigation aims to ensure fair cloud market practices.
The CMA’s investigation, announced this week, focuses on the market share held by AWS (estimated 30-40%) and Microsoft (similar range). The authority will assess whether the companies' practices stifle competition and limit choices for UK businesses. The probe follows concerns raised about the potential for anti-competitive behavior.
The CMA's review will examine the terms and conditions offered by AWS and Microsoft, and their impact on smaller cloud providers. No timeline has been provided for the investigation’s completion. Both companies are cooperating with the inquiry, but strongly disagree with the CMA's initial conclusions.
This intervention signals a broader push by the UK government to address the concentration of power within the tech sector. The outcome could reshape the cloud landscape, potentially leading to increased competition and lower prices for UK businesses. The Azure and AWS offerings are central to this.