The cloud computing industry in the UK is facing an investigation into competition issues concerning Amazon and Microsoft’s dominance. The media regulator in the UK has disclosed that these two industry giants hold around 70% to 80% of the cloud computing market while their closest competitor, Google, only holds a 5% to 10% share. In April, the media regulator raised concerns about the lack of competition and how it could impede businesses from switching to cloud providers. Consequently, this matter has been referred to the UK’s Competition and Markets Authority (CMA).
Cloud computing involves storing data, allowing access from anywhere and anytime. It has become crucial for businesses and individuals as it forms the foundation for data storage, remote software usage, media streaming, gaming, and more. This technology heavily relies on large-scale data centers owned by Amazon and Microsoft.
According to estimates for 2022, the cloud services market in the UK is valued at up to £7.5 billion. Sarah Cardell, CEO of CMA, stressed the importance of competition in this market. She stated that healthy competition ensures fairness by preventing market control from being concentrated among a few players.
The CMA has launched an investigation to examine whether competition in the cloud computing industry is working well. If any issues are identified, the inquiry will recommend measures to address them. The investigation is expected to be finished by April 2025. The CMA can enforce changes, prevent acquisitions, or require divestments to maintain a market.