Why the CMA must act now on cloud before the UK loses its digital future | Computer Weekly

"After an extensive two-and-a-half-year investigation, the CMA published its findings in July 2025. The report was explicit: Amazon Web Services (AWS) and Microsoft together account for roughly 80% of the UK's cloud services market, a duopoly so deeply entrenched that the watchdog recommended both companies be designated with strategic market status."

"Kip Meek's departure from the Competition and Markets Authority (CMA) in late January, reportedly driven by frustration at the snail-like pace of action following the cloud services market investigation, should be deeply uncomfortable reading for British businesses who depend on digital infrastructure they can trust."

"The recently announced Microsoft 365 Local, which runs Office applications on Azure Local infrastructure, is a case in point. Marketed as a path toward greater control for European organisations, many observers see it as precisely the opposite - a strategy to slow the shift toward genuine digital sovereignty by keeping customers anchored to Microsoft's architecture."

The Competition and Markets Authority's chair resigned in January citing slow progress on implementing recommendations from a two-and-a-half-year cloud services investigation completed in July 2025. The investigation found AWS and Microsoft control approximately 80% of the UK cloud market, prompting recommendations for strategic market status designation and stricter regulations. However, months after publication, no action has been taken. Meanwhile, Microsoft continues strengthening its market position through products like Microsoft 365 Local, designed to lock customers into its ecosystem under the guise of digital sovereignty. This inaction allows anti-competitive practices to persist, forcing UK organizations to remain vendor-locked and financially support dominant players.

Read at ComputerWeekly.com