Microsoft (NASDAQ:MSFT) is making it more difficult for Amazon Web Services (NASDAQ:AMZN) and Google Cloud (NASDAQ:GOOG) (NASDAQ:GOOGL) to compete in the U.K., according to an antitrust review by the country's Competition and Markets Authority (CMA).
In its provisional findings, the CMA highlighted that while cloud computing offers advantages over on-premise IT solutions, the market is highly concentrated. Microsoft and Amazon together hold 30% to 40% of the market, limiting customer options. The regulator stated that Microsoft's Azure cloud business creates obstacles for competitors, weakening market competition.
"This reduces the competitive challenge to Microsoft in the supply of cloud services," the CMA noted. The CMA, which launched its inquiry in October 2023, is now considering whether to classify Microsoft and Amazon as strategic market players. If designated, they could face fines and additional regulatory oversight. The decision on potential actions remains pending as regulators assess their next steps.
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