The regulatory body overseeing competitions in the United Kingdom, CMA, has announced its intention to initiate investigations into the market of cloud service providers in the country to determine whether any major players hold dominance over the market. The investigation was prompted by a report issued by Ofcom, the UK’s communications regulator, which highlighted various conditions set by major providers that make it difficult for new players to enter the market. These conditions include high data transfer fees, special discounts, and technical limitations, all of which contribute to the complexity of changing or utilizing multiple cloud service providers simultaneously.
According to Ofcom, the UK’s cloud market is valued at approximately £7.5 billion, with two major providers, AWS and Azure, holding a combined market share of 60-70%. When including Google in the equation, this market share increases to 81%. The investigation process is expected to conclude by April 2025, with a summary of findings.
In response to the investigation, Amazon, the provider of AWS, clarified that Ofcom’s data misinterpreted the functioning of their services and the discount procedures. Amazon emphasized that cloud service providers currently allow customers the freedom to choose the technologies they need and facilitate easier provider transitions compared to the past.
The UK’s competition regulatory body, CMA, has initiated an investigation into the dominance of major cloud service providers in the market. Prompted by a report from Ofcom, the investigation aims to assess the conditions that make it challenging for new players to enter the market. With AWS and Azure as the main players, along with Google, their combined market share stands at 81%. The investigation process is set to conclude in April 2025, with Amazon clarifying misconceptions and affirming the flexibility they offer to customers.