Ofcom Encourages Antitrust Investigation Of Amazon And Microsoft's Dominance In UK Cloud Computing Market

Amazon Cloud is considered a monopoly in the UK. (photo:AMazon.com)

British media regulatory authority, Ofcom, will encourage an antitrust investigation into the dominance of Amazon and Microsoft in the UK's cloud computing market. According to two sources familiar with the issue, Amazon and Microsoft jointly control the market share of around 60-70% in the UK cloud computing industry. While their closest competitor, Google, has only about 10%.

Ofcom's efforts to investigate antitrust have been indicated since April and will remain contained in its final report, which is scheduled to be published on Thursday, October 5, according to one of the sources. Previously, Ofcom had expressed considerations to refer the market to investigations by the CMA, Britain's competition regulatory body.

Ofcom reminded that the current situation in the UK cloud computing market makes it difficult for some customers to negotiate to get a good deal with their service providers. Technical restrictions and discounts that encourage customers to stick to one provider for all their needs, even when better alternatives are available, can be considered an anti-competitive measure.

Both parties, Amazon and Microsoft, previously stated that they would continue to work closely with Ofcom before its final report was published. In its response to previous proposals from Ofcom, Microsoft stated that such an investigation could ultimately harm consumers.

The regulatory agency will announce their decision on whether to refer the market to the CMA (Competition and Market Authority) on October 5, in accordance with the deadline set by law.