UK CMA Says Microsoft and Amazon Stifle Cloud Competition

Britain’s Competition and Markets Authority said on 31 July that Microsoft and Amazon hold “significant unilateral market power” in the UK cloud-computing market, citing high concentration levels and contractual practices such as data-transfer (egress) fees and restrictive software licensing that make it difficult for customers to switch providers. The regulator concluded the two companies’ conduct is hurting competition and recommended an in-depth market investigation using new powers created under the country’s digital-markets legislation. Remedies after such a probe could range from changes to contract terms to more far-reaching structural measures. Microsoft rejected the findings as “misleading,” arguing the UK cloud market remains competitive and dynamic. Amazon had not issued a response at the time of the CMA’s announcement.