UK Antitrust Investigation to Tighten Noose on Amazon, Microsoft

Amazon and Microsoft will face a tougher investigation by the UK's Competition and Markets Authority (CMA) due to concerns over their dominance in the cloud computing market. The CMA is assessing whether the companies have abused their market power to stifle competition. Amazon Web Services (AWS) and Microsoft Azure are the largest players in the cloud computing market. Microsoft has stated that it is cooperating fully with the CMA and is confident in the competitive nature of the market. The investigation is ongoing and no timeline for a conclusion has been set.

The UK's Competition and Markets Authority (CMA) has intensified its scrutiny of Amazon Web Services (AWS) and Microsoft Azure, the two largest players in the cloud computing market. The regulator has expressed significant concerns about the companies' dominance and is assessing whether they have abused their market power to stifle competition [1].

The CMA's investigation stems from a 21-month probe into the market, which found that Microsoft and AWS hold a combined share of up to 70% of UK customer spending in the £10.5 billion cloud computing market [2]. The regulator is particularly concerned about Microsoft's licensing practices, which have been cited as adversely impacting the competitiveness of AWS and Google Cloud in the supply of cloud services.

The CMA has recommended that the CMA Board designate Microsoft and AWS with Strategic Market Status (SMS), indicating that they hold substantial and entrenched market power within the digital activity of cloud services [2]. This designation allows the regulator to impose special conduct requirements on the companies to ensure fair competition within the UK cloud market.

Microsoft has stated that it is cooperating fully with the CMA and is confident in the competitive nature of the market. The investigation is ongoing, and no timeline for a conclusion has been set. However, the development comes amidst growing global scrutiny of tech giants' market dominance, which may impact the competitive landscape and potential regulatory actions affecting major tech players.

References:
[1] https://www.ainvest.com/news/uk-regulator-investigates-amazon-microsoft-impact-cloud-competition-2507/
[2] https://www.channelfutures.com/cloud/uk-regulator-microsoft-aws-harming-cloud-competition