The UK’s competition authority has identified Microsoft and Amazon as major players affecting competition in the cloud computing sector, urging an investigation into their market dominance.
Market Dominance Concerns
The Competition and Markets Authority (CMA) highlighted that both companies hold significant market power in cloud services, benefiting financially beyond their capital costs.
Implications for Cloud Services
Practices like egress fees and licensing terms are leading to a ‘lock-in’ effect, limiting business options for switching providers.
Licensing Practices Under Scrutiny
Microsoft’s licensing terms favor its Azure cloud, restricting choices for alternative products and suppliers.
Market Share Analysis
Microsoft and Amazon each hold 30% to 40% of the IaaS market, with Google trailing at 5% to 10%.
The CMA suggests further investigation under the DMCC Act to assess strategic market status.
