CMA in the United Kingdom finds that Microsoft and Amazon harms cloud competition

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The attendees are going through the exhibition hall in AWS Re: Invent, a conference hosted by Amazon Web Services, in Las Vegas on December 3, 2024.

Noah Berger Gety pictures

London – The competition organizer in Britain said on Thursday Microsoft and Amazon It harms competition in the cloud computing industry and called for achieving its dominance in the market under the rules of new strict technology in the country.

The Competition and Markets Authority said that the market and barriers focus in front of entering the cloud services market have enabled Microsoft and Amazon to retain the “unilateral market power” and reap financial gains that exceed the cost of capital spending over a sustainable period.

Technology giants such as Amazon, Microsoft and Google built huge companies by providing access to computing resources – such as storing and processing data – via the Internet using data centers, and large facilities that contain custom devices.

CMA is concerned that some practices within space, such as exit fees and unfavorable licensing conditions, create the “lock” effect where companies are detained in contractual agreements that are difficult to leave.

Microsoft and Amazon were not immediately available to comment when connected by CNBC.

The International Energy Agency has faced a problem with technical and commercial restrictions in the cloud market that makes it difficult for companies to exchange the cloud provider and find better offers or innovative new services from alternative service providers.

It also took Microsoft licensing practices that make the cheapest use of the GIANT -based Windows server in the field of technology on the Azure of competing services, saying the problem “restricts more limited choice and attractive products and suppliers already.”

The National Democratic Transport Authority said that both Microsoft and Amazon carry approximately 30 % to 40 % of the alleged infrastructure market as an IAAS service, which requires treatment, storage, networks and other crude computing resources. She said that Google is the third largest provider, but it carries a much smaller IAS market share to 10 % to 10 %.

To address problems, CMA recommended more investigation into Microsoft and Amazon under the Digital Markets Law, Competition and Consumers (DMCC) to determine whether they have a “strategic market status”.

DMCC is a recent law in the United Kingdom aimed at preventing anti-competition behavior in digital markets-closer to the European Union’s digital market law. The companies that have been appointed to players in the strategic market are considered to have great market power and can be exposed to targeted interventions to address competition concerns.

This is an urgent news story. Please check again for updates.



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