The Competition and Markets Authority (CMA) has concluded its investigation into the UK cloud infrastructure services market, recommending that Microsoft and Amazon Web Services (AWS) face targeted interventions to address competition issues. These recommendations will leverage the Digital Markets, Competition and Consumers Act 2024, to classify AWS and Microsoft as having "strategic market status". The CMA identifies significant unilateral market power held by these companies, which has negative impacts on competitors and customers. Measures are intended to enhance competition and are adaptable to evolving market conditions.
The Competition and Markets Authority (CMA) has recommended that Microsoft and Amazon Web Services (AWS) face "targeted and bespoke" interventions to curb harmful competitive behaviours in the UK cloud market.
CMA's recommendation stems from an investigation that began in October 2023, concluding that AWS and Microsoft hold significant unilateral market power that negatively impacts competition.
The CMA plans to use powers from the Digital Markets, Competition and Consumers Act 2024 (DMCCA) to designate AWS and Microsoft as suppliers with "strategic market status".
By implementing targeted measures, the CMA seeks to directly benefit UK customers and improve competitive conditions for other cloud service providers.
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