- Halfway through its inquiry into UK cloud services, UK Digital Regulator Ofcom decides to refer the market to the Competition and Markets Authority for further investigation after discovering objectionable practices by the influential Cloud Service Providers.
- Ofcom marked Amazon.Com Inc AMZN And microsoft corp MSFT Practices to exploit their market position to make it difficult for customers to switch and use multiple clouds Delivery.
- Ofcom found that out Amazon Web Services (AWS) and Microsoft have a combined market share of 60-70% in the UK alphabet inc GOOD Google Google is its closest competitor with a share of 5-10%. Collectively, these companies are known as “hyperscalers,” and the vast majority of cloud customers use their services in some form.
- Also read: Google flags Microsoft’s cloud practices as anti-competitive
- Ofcom pointed to the exorbitant exit fees, technical interoperability limitations and promised spend rebates by the influential service providers to stifle competition for smaller cloud providers.
- The regulator proposes to publish a final report on its findings and recommendations, including its decision on a market investigation, by October 5, 2023.
- It proposed that the cloud infrastructure market be referred to the CMA for a market inquiry to further examine the nature and extent of the barriers and whether there are interventions that would disrupt the functioning of the market for customers and ultimately UK consumers could improve.
- Photo by Rainer Stropek via Flickr
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