UK regulators have accused Microsoft and Amazon of unfair competition practices in the cloud services market. This development could potentially lead to an antitrust investigation into their business practices.
Ofcom, the media regulator in Britain, has released the preliminary results of a market study investigating the large cloud services market. In September, Ofcom commenced a review into the industry to determine if companies providing public cloud infrastructure create any obstacles to competition.
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“Our provisional view is that competition is being limited by market features that make it more difficult for customers to switch and use multiple suppliers (known as ‘multi-cloud’),” Ofcom said.
The regulator suggested that the case be referred to the Competition and Markets Authority, which is responsible for promoting fair competition in markets, for further investigation.
“We received provisional findings from Ofcom today in relation to its Cloud market study and are in the process of reviewing these,” a CMA spokesperson said.
“We stand ready to carry out a market investigation into this area, should Ofcom determine it is required following the completion of its consultation process.”
