UK Cloud Computing Giants Amazon and Microsoft Face CMA Investigation Over Lack of Competition

In a significant development, the UK’s cloud computing sector is under scrutiny as media regulator Ofcom raises concerns over the overwhelming dominance of Amazon and Microsoft. These giants account for 70–80% of the UK cloud computing market, while Google lags far behind with only 5–10%. The lack of competition has alarmed Ofcom, hindering businesses from switching providers effectively. To address this, Ofcom has referred the matter to the UK’s Competition and Markets Authority (CMA) for investigation. Both Amazon and Microsoft have pledged cooperation with the CMA, although Amazon contested Ofcom’s concerns, citing a misunderstanding of the sector’s dynamics. Cloud computing, essential for individuals and businesses, involves storing data online for anytime access. The CMA, aiming for fair competition, aims to evaluate the market’s functionality and determine necessary actions. Ofcom expressed worries about obstacles hindering consumers from switching between providers, including steep fees for data transfer. The investigation, set to conclude by April 2025, could reshape the industry, ensuring a level playing field and fostering innovation.