The cloud services of tech giants Google (GOOGL) and Amazon (AMZN) could be under the scanner in the UK. The country’s media regulator, Ofcom, has asked the UK’s antitrust authority to probe the companies’ dominance in the country’s cloud market.
Ofcom stated that Amazon Web Services (AWS) and Microsoft (MSFT) had a combined market share between 70% and 80% of the UK’s public cloud infrastructure services market last year. Google had a market share in the range of 5% to 10%.
Ofcom commented, “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 others to take action.” The media regulator has been concerned about rising competition and the difficulty of switching providers in the cloud infrastructure space.
Both Amazon and Microsoft disagreed with Ofcom’s findings but were willing to work with the Competition and Markets Authority (CMA). The CMA welcomed the referral, emphasizing the importance of competition in the £7.5 billion ($9.1 billion) market. The CMA’s investigation is expected to conclude by April 2025. Cloud computing services have also attracted regulatory scrutiny in France and the EU.
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