London, UK: The UK’s cloud computing market will face an investigation over concerns that it is being dominated by tech giants Amazon and Microsoft.
Ofcom, the media watchdog, stated that Amazon and Microsoft collectively represent 70–80 percent of the UK’s cloud computing sector, with Google being the closest competitor at 5–10 percent.
In April 2023, Ofcom expressed concern that the limited competition in the market made it challenging for businesses to switch cloud computing providers. Ofcom has asked the UK’s Competition and Markets Authority (CMA) to investigate the matter within the sector.
Cloud computing is essentially storing data online, allowing for universal access at any location and time. Businesses across the UK utilize these services. Ofcom has estimated that the UK’s cloud services market will be valued at up to $9 billion in 2022.
“Many businesses now completely rely on cloud services, making effective competition in this market essential,” CMA chief executive Ms. Sarah Cardell said.
“Strong competition ensures a level playing field so that market power doesn’t end up in the hands of a few players, unlocking the full potential of these rapidly evolving digital markets so that people, businesses, and the UK economy can get the maximum benefits,” Ms. Cardell remarked.
The CMA chief executive also stated that the CMA’s independent inquiry group will carry out an investigation to determine whether competition in this market is working well and, if not, what action should be taken to address any issues it finds.
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