Microsoft and Amazon cloud dominance hurts competition, UK regulator says

Published 31/07/2025, 11:22
© Reuters.

Investing.com -- Britain’s antitrust regulator has found that Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT)’s dominant position in cloud computing is negatively affecting competition, with the situation made worse by technical and commercial barriers that make it difficult for customers to switch providers.

The Competition and Markets Authority (CMA) inquiry group said on Thursday that the regulator should investigate whether to designate the two tech giants with strategic market status (SMS) in cloud services, which would allow it to impose tailored conditions on their operations.

The inquiry group noted that the CMA has indicated it will not consider launching new SMS investigations through its Digital Markets Unit until early next year.

While Google (NASDAQ:GOOGL) is recognized as the third major cloud services provider, the regulator pointed out that it holds a significantly smaller market share compared to Amazon and Microsoft.

Microsoft responded to the findings by saying the report "misses the mark again, ignoring that the cloud market has never been so dynamic and competitive, with record investment, and rapid, AI-driven changes."

A Microsoft spokesperson also criticized the recommendations for failing to include Google, which they described as "one of the fastest-growing cloud market participants."

"Microsoft looks forward to working with the Digital Markets Unit toward an outcome that more accurately reflects the current competition in cloud that benefits UK customers," the spokesperson added.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.