The UK's Competition and Markets Authority (CMA) faces backlash from local cloud providers for its decision to not pursue further investigations into Committed Spend Agreements (CSAs) associated with AWS and Microsoft. CSAs are contracts that enforce minimum spending in exchange for discounts, and concerns have been raised that they hinder market competition. Although the CMA found widespread use of CSAs, it concluded they do not harm competition. However, local providers argue that these agreements favor big tech firms in lucrative contracts, raising questions about the CMA's potential conflicts of interest due to its own contracts with AWS.
Critics argue that the CMA's inaction on Committed Spend Agreements allows big tech like AWS and Microsoft to dominate the UK cloud market without sufficient scrutiny.
Despite CMA's findings, smaller cloud providers feel threatened by CSAs, which they believe conceal predatory practices and inhibit fair competition in cloud services.
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