UK investigates Amazon, Microsoft cloud services over market dominance concerns

The UK’s competition watchdog (CMA) has opened an investigation into Amazon’s and Microsoft’s cloud services after concerns over their dominant position in the market.

The move follows a study by telecoms regulator Ofcom, which “identified features that make it more difficult for UK businesses to switch and use multiple cloud suppliers,” mainly concerning the two US tech giants.

“We welcome Ofcom’s referral of public cloud infrastructure services to us for in-depth scrutiny,” said Sarah Carell, CEO at CMA. “This is a £7.5bn market that underpins a whole host of online services — from social media to AI foundation models. Many businesses now completely rely on cloud services, making effective competition in this market essential.”

Ofcom’s study found that Amazon and Microsoft are the two leading cloud providers in the UK, with a combined market share of 70% to 80% in 2022. Google came third at 5%-10%.

table showing the market share of cloud services in the UK in 2022