In response to the findings, the CMA will investigate if action should be taken to ensure maximum benefits for people, businesses, and the UK economy. An independent panel will focus on the investigation over the next two years, with a conclusion expected in April 2025. Amazon has disagreed with Ofcom's findings, stating that it does not charge egress fees and that it has made it easier for customers to switch between cloud providers. Microsoft and Google have not yet responded to the allegations.
Key takeaways:
- UK regulators have initiated a competition probe into Microsoft, Google, and Amazon’s cloud computing practices, based on a study by media watchdog Ofcom.
- The study identified practices that make it difficult for customers to switch or use multiple cloud suppliers, including "egress fees" and technical barriers.
- Amazon, Microsoft, and Google hold a significant market share in the cloud infrastructure sector, with Amazon's AWS and Microsoft leading with a combined share of 70% to 80%.
- The Competition and Markets Authority (CMA) will investigate if action should be taken to ensure maximum benefits for people, businesses, and the UK economy. The investigation is expected to conclude in April 2025.