UK Regulator Requests Antitrust Investigation into Amazon and Microsoft’s Dominance of Cloud Market

The UK’s media regulator, Ofcom, has asked the country’s antitrust authority, the Competition and Markets Authority (CMA), to investigate the dominance of U.S. tech giants Amazon and Microsoft in the UK cloud market. Ofcom has identified certain features that make it challenging for UK businesses to utilize multiple cloud suppliers. According to Ofcom, Amazon Web Services (AWS) and Microsoft collectively held a 70-80% share of the UK’s public cloud infrastructure services market in 2022, with Google being their closest competitor at 5-10%.

This move by Ofcom comes as other countries, including the United States, France, Japan, the Netherlands, and South Korea, have also expressed interest in investigating the cloud computing market. The CMA will conduct an independent investigation to determine if there is an adverse effect on competition and, if so, recommend appropriate actions.

Both Amazon and Microsoft have responded to Ofcom’s request. Amazon disagreed with Ofcom’s findings, stating that they were based on a misconception of how the IT sector operates. However, the company expressed its willingness to work constructively with the CMA. Microsoft, on the other hand, emphasized its commitment to ensuring a highly competitive and innovative UK cloud industry and stated that it would engage constructively with the CMA.

Industry experts believe that the dominance of AWS, Microsoft, and to a lesser extent, Google, is not limited to the UK but is prevalent across major economies worldwide. However, the UK is taking a proactive approach in addressing this issue and may pave the way for regulatory action in other jurisdictions.

Ofcom’s referral to the CMA was welcomed by the latter, emphasizing the importance of effective competition in the UK’s £7.5 billion ($9.1 billion) cloud market. Google’s Vice President, Amit Zavery, highlighted the need for an open cloud market without vendor lock-in, allowing government agencies, businesses, and consumers to freely choose the services that best meet their needs.

The CMA is expected to complete its investigation by April 2025. This development underscores the growing scrutiny of tech giants’ dominance in the cloud market and the efforts being made to ensure fair competition and consumer choice.