UK Cloud Services Market: Oligopoly Concerns

The Competition and Markets Authority (CMA) has released provisional findings from its investigation into the UK cloud services market. AWS and Microsoft hold a dominant 30-40% market share each, dwarfing Google's presence. High capital investment and technical barriers create significant entry hurdles, hindering customer switching. Microsoft leverages its software strength to further limit competition. The CMA proposes using new digital market powers to consider designating AWS and Microsoft with strategic market status (SMS), potentially implementing interventions like regulating egress fees, lowering technical barriers, and addressing Microsoft's licensing practices. This aims to boost competition, leading to better prices, service quality, and choice for UK businesses.