UK regulator asks for antitrust probe into Amazon and Microsoft’s cloud dominance. ON THURSDAY, the UK’s media regulator requested an investigation into the dominance of Microsoft (MSFT.O) and Amazon (AMZN.O) in the UK cloud market by the nation’s antitrust body. Ofcom claimed to have found characteristics that made it more challenging for UK enterprises to work with numerous cloud providers.

According to Ofcom, Amazon Web Services (AWS) and Microsoft held 70–80% of the public cloud infrastructure services market in Britain in 2022. Google (GOOGL.O) was their main rival, taking between 5 and 10%.

“The CMA (Competition and Markets Authority) will now conduct an independent investigation to decide whether there is an adverse effect on competition, and if so, whether it should take action or recommend that others take action,” it stated.

Ofcom’s conclusions, according to Amazon, were based on “a fundamental misunderstanding of how the IT sector functions, and the services and discounts on offer.” Amazon said it disagreed with Ofcom’s findings.

A spokesman stated, “any unwarranted intervention could result in unintended harm to IT customers and competition.”

However, it promised to cooperate constructively with the CMA. Microsoft declared its dedication to preserving the UK cloud market’s innovation and fierce competition. A Microsoft representative added, “We will positively engage with the CMA.

Because of AWS and Microsoft’s dominant market positions, Ofcom stated in April that it was concerned about their business methods and intended to request an investigation from the competition watchdog. According to Reuters, Ofcom was anticipated to press for an antitrust inquiry. Businesses in the UK complained to Ofcom about how difficult it was to move between or combine several cloud providers.

To ensure that corporate customers continue to benefit from cloud services, Ofcom Director Fergal Farragher said, “We are referring the market to the CMA for further scrutiny.” The CMA applauded the decision, stating that, given enterprises’ widespread use of cloud services, there must be healthy competition in the 7.5 billion pound ($9.1 billion) industry.

Additionally, the French antitrust authorities have been interested in cloud computing. It stated in June that several industry practices would possibly limit competition, opening the door for future investigations.

As a result of a complaint filed by industry association Cloud Infrastructure Services Providers in Europe (CISPE), whose members include Amazon, EU antitrust inspectors are also investigating Microsoft’s cloud computing operations. According to Google Vice President Amit Zavery, the referral by Ofcom showed the necessity of developing a free-floating cloud market without vendor lock-in.

“UK government agencies, businesses, and consumers want to move easily across cloud platforms and choose which services best meet their needs,” he added, noting that Google will keep allowing its products to function on any cloud without imposing any restrictions.

By April 2025, the CMA will have finished its inquiry.