Microsoft and AWS Face More CMA Scrutiny

The UK’s Competition and Markets Authority found that competition across cloud services was hindered for businesses and organizations due to the dominance of Amazon Web Services and Microsoft. The regulator noted each of the companies controls around 40% of the UK market for cloud services while Google has a much smaller share.

An independent inquiry group provisionally recommends investigating Microsoft and AWS under the new Digital Markets, Competition, and Consumers Act that went into effect last month. The CMA noted customers such as financial services, retailers, digital start-ups, and key public services spent £9 billion on cloud services in 2023, a figure growing by more than 30% each year.

“Effective competition in the delivery of these vital services could drive choice, quality, and competitive prices, not only helping UK businesses but boosting innovation, productivity, growth, and investment across the UK economy,” the CMA stated. Kip Meek, chair of the CMA’s inquiry group, stated competition in the market is not working as well as it could be which is why the group is proposing the CMA investigate the largest cloud service providers using its new digital markets powers. The UK regulator will make a final decision by the statutory deadline of 4 August 2025.