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Amazon Web Services and Microsoft oppose plans to refer the UK cloud market to a competition regulator

July 2023 by Mark Appleton, Chief Customer Office at ALSO Cloud UK

In recent months, Ofcom has investigated the UK cloud services market amid concerns about the increasing dominance, such as Amazon Web Services (AWS), Google Cloud and Microsoft Azure.

There has been a proposal from Ofcom to refer the UK cloud market for investigation into anti-competitive behaviour, citing that AWS and Microsoft are currently the leading UK providers of cloud infrastructure services but may need to be investigated further.

Ofcom’s initial market research has revealed that some features and practices make it more difficult for customers to switch between or use multiple cloud providers - Amazon’s and Microsoft’s dominant positions in the industry have been particularly problematic.

However Mark Appleton, Chief Customer Office at ALSO Cloud UK, commented that it is clear that both Microsoft and Amazon continue to demonstrate their commitment to maintaining a high level of competitiveness in the UK cloud industry and to ensuring that cloud technologies continue to have a transformative influence on the economy of the UK.

Mark concluded: "Due to the rapid evolution and highly dynamic nature of cloud technology, any intervention could be negative and result in poor outcomes for UK businesses and the public sector. Suppose, for instance, UK customers were denied discounts or innovation due to interoperability requirements prioritising portability over innovation and differentiated value-added services".

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