LONDON : British media regulator Ofcom will this week push for an antitrust investigation into Amazon and Microsoft’s dominance of the UK’s cloud computing market, in keeping with two sources accustomed to the matter.
The advice, first issued by Ofcom in April, will stay within the physique’s closing report on the matter, set to be printed on Thursday, one of many sources mentioned.
Between them, Amazon and Microsoft get pleasure from a mixed market share of 60-70%. In the meantime, their closest competitor, Alphabet’s Google, has round 10%.
The watchdog beforehand mentioned it had thought-about referring the marketplace for investigation by the CMA, the British competitors regulator.
Ofcom warned the present state of Britain’s cloud computing market made it tough for some current prospects to cut price for an excellent cope with their supplier.
Technical restrictions and reductions encouraging prospects to maintain utilizing a single supplier for all their wants, even when higher options have been obtainable, could possibly be thought-about anti-competitive, the physique mentioned in a report earlier this 12 months.
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“We’re involved that constraints on prospects’ potential to make use of a couple of supplier might make it more durable for smaller cloud suppliers to win enterprise and compete with the market leaders,” it learn.
Each Amazon and Microsoft beforehand mentioned they’d proceed working with Ofcom forward of the publication of its closing report.
In response to Ofcom’s earlier proposal, Microsoft submitted a 58-page response, stating an investigation might finally hurt customers.
“It will be a very unlucky consequence if UK companies and public sector prospects confronted much less vibrant and aggressive cloud options on a worldwide stage than these obtainable to their rivals within the EU, the U.S. and China,” it mentioned.
Amazon, Microsoft, and Ofcom didn’t instantly reply to requests for touch upon Tuesday. A spokesperson for the CMA declined to remark.
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Up to date: 03 Oct 2023, 08:23 PM IST
