The CMA's investigation into the UK cloud infrastructure services market reveals insufficient competition, leading to potential overcharges for users and limited options. Chair Kip Meek indicates that the CMA may investigate major providers like AWS and Microsoft under new digital market laws. The report suggests that customers face barriers that hinder them from switching providers, which emphasizes the need for a more competitive environment to enhance pricing and service innovation. Specific practices from Microsoft that could be deemed controversial are also highlighted in the findings.
Customers say that cloud services offer both quality and innovation to them. However, we consider that a more competitive market would have sustained better market outcomes, including more consistently competitive prices.
The lack of competition in the cloud market could mean UK customers are collectively paying hundreds of millions more per year than they need to for services.
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