United Kingdom: Competition and Markets Authority opened consultation on provisional findings in cloud services market investigation

On 28 January 2025, the UK's Competition and Markets Authority (CMA) published a report with the provisional findings from its in-depth investigation into the cloud services market and opened a consultation on the findings until 18 February 2025. The report indicates that competition in the UK's cloud services sector is not functioning optimally, potentially leading to higher costs, reduced choice, diminished innovation, and lower service quality for businesses and organizations nationwide. The inquiry highlights that Amazon Web Services (AWS) and Microsoft each hold up to 40% of the market share, with Google trailing as the next largest provider. The CMA identified significant technical and commercial barriers that hinder customers from switching providers or utilizing multiple cloud services, effectively locking them into their initial choices. Additionally, the report notes that Microsoft's dominant position in software makes it challenging for AWS and Google to compete effectively for cloud customers who wish to use Microsoft software on the cloud. In response, the inquiry group recommends that the CMA consider using its new digital markets powers under the Digital Markets, Competition and Consumers Act 2024 to investigate AWS's and Microsoft's cloud service activities further.