Ofcom to Push for Antitrust Investigation into Amazon and Microsoft’s Dominance of UK Cloud Computing Market

British media regulator Ofcom is set to advocate for an antitrust investigation into the dominance of Amazon and Microsoft in the UK’s cloud computing market, according to sources familiar with the matter. The two tech giants currently hold a combined market share of 60-70%, while their closest competitor, Google, holds around 10%.

Ofcom’s push for an antitrust probe, initially signaled in April, will be included in the regulator’s final report, scheduled for publication on Thursday. The watchdog has previously considered referring the market for investigation by the Competition and Markets Authority (CMA).

In a report earlier this year, Ofcom highlighted concerns regarding the current state of the cloud computing market in the UK. The regulator expressed worries about constraints on customers’ ability to use multiple providers, making it difficult for smaller cloud providers to compete with the market leaders. Ofcom also raised concerns about technical restrictions and discounts that discourage customers from exploring better alternatives.

Both Amazon and Microsoft have expressed their commitment to working with Ofcom ahead of the final report’s release. Microsoft, in response to Ofcom’s earlier proposal, submitted a detailed response stating that an investigation could potentially harm consumers and hinder the competitiveness of UK businesses and public sector customers on a global scale.

Ofcom’s decision on whether to refer the market to the CMA will be announced by the statutory deadline on Thursday. The CMA declined to comment on the matter.

The outcome of this investigation could have significant implications for the UK’s cloud computing industry, potentially fostering a more competitive environment and providing customers with a wider range of choices.