Regulate AWS and Microsoft, says UK cloud provider survey | Computer Weekly

"71.2% of surveyed cloud providers believe regulatory intervention is urgent or extremely urgent, while 74.8% believe dominant providers are likely to further entrench their position without swift regulatory action. The Competition and Markets Authority's decision is expected later this month regarding whether to launch a formal investigations into AWS and Microsoft Azure under the UK's digital markets regime."

"The cloud market in the UK - in which AWS and Azure are the two largest providers in a 'highly concentrated' market - has several adverse effects on competition. These included: market concentration, which makes it difficult for alternative cloud providers to enter and grow; customers being unable to move to new providers as need arises because of lock-in to the initial provider; and Microsoft licensing practices that reduce competition in cloud services."

"The OCC research also found that 82% of cloud providers reported experiencing barriers when competing with dominant players. These respondents cited practices such as restrictive software licensing, bundling, interoperability limitations, and committed-spend discounts."

The UK cloud market faces significant competition concerns, with Microsoft Azure and AWS dominating a highly concentrated sector. A survey by the Open Cloud Coalition reveals that 71.2% of cloud providers believe urgent regulatory intervention is necessary, while 74.8% expect dominant providers to further entrench their positions without swift action. The Competition and Markets Authority identified multiple adverse effects including market concentration barriers, customer lock-in preventing provider switching, and Microsoft's restrictive licensing practices. The CMA is expected to decide by end of March whether to apply strategic market status designations to AWS and Microsoft, enabling targeted interventions. Eighty-two percent of surveyed providers reported experiencing competitive barriers from dominant players, citing restrictive licensing, bundling, interoperability limitations, and committed-spend discounts as problematic practices.

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