31st Jul 2025 14:36
(Alliance News) - British regulators Thursday said that competition around cloud computing in the UK "is not working well", having addressed concerns that Amazon.com Inc and Microsoft Corp are dominating the sector.
The Competition & Markets Authority, CMA, will now address the matter further, a statement said.
It follows a decision already in October 2023 for a deeper investigation following an initial probe by the UK's communications regulator Ofcom that lasted one year.
"Our task in this investigation has been to decide whether competition is working well in cloud services markets and, if it is not, to decide what action should be taken to remedy any harms to competition," the CMA said Thursday.
"Our final decision is that competition is not working well, so we have made recommendations to address this."
The CMA could designate the US companies with "strategic market status", subjecting them to special requirements under new UK regulations.
The regulator on Thursday noted that "cloud services have transformed the way UK businesses and public services run their operations and are a critical input to the digital services that UK consumers use each day".
The CMA added that customers spent GBP10.5 billion on cloud services in 2024, with spending growing by almost 30% each year since 2020.
"Cloud services also underpin AI model development and deployment," it noted.
Microsoft shares opened 5.8% higher at UDS543.12 each on Thursday in New York, giving it a market capitalisation of USD4.06 trillion. Amazon shares opened up 0.6% at USD231.66, for a market cap of USD2.49 trillion.
source: AFP
Copyright 2025 Alliance News Ltd. All Rights Reserved.