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UK cloud market should adopt tougher anti-competition rules to crack down on US giants

Umito November 21, 2024

The CMA may need to introduce new measures for a fairer cloud market
Ofcom has forwarded its 2022 findings to the CMA, which could make a decision soon
The main considerations are release and licensing fees as well as technical restrictions.

The UK’s Competition and Markets Authority (CMA) is reportedly set to propose new measures to tackle anti-competitive business practices in the nation’s cloud market.

Such measures would address the current dominance of hyperscalers like Amazon, Microsoft And Google.

The investigation stems from a 2022 Ofcom report examining the dominance of these companies in the UK cloud sector – the review had already been referred by the communications regulator to the CMA to address these concerns .

The CMA could investigate the dominance of Amazon, Microsoft and Google

The CMA has reportedly set a provisional decision deadline between November and December 2024, meaning hyperscalers could soon face even greater regulatory pressure after what appears to be months of endless investigations.

If it continued its investigation, the CMA would target issues such as exit fees, unfair licensing fees, discounts for large customers and interoperability issues which present technical difficulties for those looking to switch providers.

Solutions could include price caps, reduced technical barriers and blackout agreements that encourage customers to engage in higher spending.

Microsoft could also be asked to charge the same price for its productivity software regardless of the cloud provider, which could disrupt its existing model.

In June 2024 reportThe CMA said it was in the early stages of exploring potential solutions. The Authority declined to comment on the timetable.

For the three hyperscalers, this will not be the first investigation they have faced in recent months for anticompetitive practices. Microsoft has been in the spotlight over its cloud conditions in Europe and the United States. Just last week, the FTC indicated that it would investigate Microsoft on locking in clients in its Azure cloud platform – Amazon, Apple and Google are also not immune to similar pressure from the FTC.

Via CNBC

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