UK Probes Amazon And Microsoft Over Cloud Computing Dominance

Regulatory concerns regarding the dominant positions held by Amazon and Microsoft in Britain's cloud computing market have prompted an investigation into the competitiveness of this critical industry.

According to the report, British businesses encounter barriers when attempting to switch providers or use multiple cloud suppliers. I Photo: Eóin Noonan, Web Summit Rio via Sportsfile

The UK communications regulator, Ofcom, announced on Thursday that its yearlong study of the cloud communications services market had identified certain features that could impede competition.

According to the report, British businesses encounter barriers when attempting to switch providers or use multiple cloud suppliers.

Cloud computing involves the use of data centers worldwide to store photos and emails or to run software. It has become an essential service for many businesses, as they turn to cloud providers to avoid the expense of purchasing costly equipment and real estate for their own data centers.

Ofcom has requested that the UK antitrust watchdog, the Competition and Markets Authority (CMA), conduct a more in-depth examination of the £7.5 billion ($9 billion) cloud market.

The CMA has confirmed that it will launch a comprehensive investigation, expected to conclude by April 2025.

Fergal Farragher, Ofcom's director responsible for the market study, stated, "Some UK businesses have expressed concerns about the difficulty of switching or combining cloud providers, and it is not clear that competition is functioning effectively.

WEEKLY FEATURE : Jose Mari Chan And The Christmas Anthem