The UK cloud market will face tougher anti-competitive rules as it clamps down on US giants
- The CMA could introduce new measures for a fairer cloud market
- Ofcom referred its 2022 findings to the CMA, which could make a decision soon
- Key considerations include outbound and licensing costs and technical limitations
The UK Competition and Markets Authority (CMA) will reportedly propose new measures to tackle anti-competitive business practices in the country’s cloud market.
Such measures would address the current dominance of hyperscalers such as Amazon, Microsoft and Google.
The research follows on from a 2022 Ofcom report examining the dominance of these companies in the UK cloud sector. The investigation was previously referred to the CMA by the communications regulator to address these concerns.
CMA could investigate the dominance of Amazon, Microsoft and Google
The CMA reportedly has a provisional decision deadline of November to December 2024, meaning the hyperscalers could soon face even more regulatory pressure after what seems like months of endless scrutiny.
As it continues its investigation, the CMA will focus on issues such as outbound charges, unfair licensing fees, discounts for larger customers and interoperability issues that pose technical difficulties for those looking to switch providers.
Remedies could include price caps, reducing technical barriers and banning agreements that induce customers to make higher expenditures.
Microsoft could also be asked to charge the same for its productivity software regardless of cloud provider, something that could disrupt the existing model.
In June 2024 reportthe CMA said it was in the early stages of exploring possible solutions. The Authority declined to comment on the timing.
For the three hyperscalers, this will not be the first investigation they have faced over anti-competitive practices in recent months. Microsoft has been in the spotlight a lot for its cloud terms in Europe and the US. Just last week, the FTC indicated it would investigate Microsoft for locking customers into its Azure cloud platform – Amazon, Apple and Google are also not exempt from similar pressure from the FTC.
Via CNBC
