Ofcom Expected to Recommend Antitrust Investigation into Amazon and Microsoft’s Dominance in UK Cloud Computing Market

British media regulator Ofcom is set to recommend an antitrust investigation into the dominance of Amazon and Microsoft in the UK’s cloud computing market, according to sources familiar with the matter. Ofcom’s initial recommendation, issued in April, will reportedly be included in the final report to be published on Thursday.

The investigation aims to address concerns about the market power and potential anti-competitive practices of these tech giants. With cloud computing becoming increasingly vital for businesses and organizations, the investigation seeks to ensure fair competition and foster innovation in the industry.

Ofcom’s move comes as part of its ongoing efforts to regulate the digital sector and promote a level playing field for all market participants. The regulator’s focus on the cloud computing market reflects the growing importance of this sector in supporting businesses’ digital infrastructure and operations.

Both Amazon and Microsoft are major players in the global cloud computing market, offering a wide range of services to businesses of all sizes. The investigation will assess whether their dominance in the UK market has resulted in any adverse effects on competition, pricing, or customer choice.

The final report from Ofcom is expected to provide insights into the potential impact of Amazon and Microsoft’s market dominance and propose measures to address any identified concerns. This investigation could have significant implications for the future of the UK’s cloud computing landscape and the broader digital economy.

As the report is set to be published on Thursday, stakeholders and industry observers will be eagerly awaiting its findings and recommendations. The outcome of this investigation could shape the regulatory landscape for cloud computing in the UK and potentially influence similar actions in other jurisdictions.

It remains to be seen how Amazon and Microsoft will respond to the recommendation for an antitrust investigation. The tech giants have previously defended their market positions, highlighting the benefits they bring to customers through their cloud computing services.

Ofcom’s move to address potential antitrust issues in the cloud computing market demonstrates the regulator’s commitment to ensuring fair competition and fostering innovation in the digital sector. The outcome of this investigation could have far-reaching implications for the industry, as well as for businesses and consumers relying on cloud computing services in the UK.