The Competition and Markets Authority's (CMA) independent inquiry group is preparing to investigate the public cloud infrastructure services market, as announced on Thursday. The investigation follows a study by Ofcom into the £7.5 billion sector, which has seen rapid adoption of remote computing resources.
Sarah Cardell from CMA will lead the investigation, which aims to scrutinize barriers to switching suppliers and the software licensing practices of major players in the market. Notably, Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN), who together control between 70% and 80% of Britain's sector, will be under special scrutiny.
The probe will focus on various aspects such as egress fees, discounts, and technical barriers that may prevent customers from switching providers. In addition, the software licensing practices of certain providers, specifically Microsoft, will also be examined.
This investigation forms part of a broader initiative by the CMA under its upcoming Digital Markets, Competition and Consumer Bill. This initiative was outlined in its 2023 to 2024 Annual Plan.
The conclusions drawn from this investigation are expected to be published on the Cloud Services Market Investigation case page by April 2025. The CMA inquiry group is expected to release a statement soon outlining proposed focus areas for this crucial investigation.
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