The CMA will explore whether technical barriers, fees to transfer data, volume discounts and software licensing practices are hindering competition in cloud services
The Competition and Markets Authority (CMA) has today published an issues statement setting out the proposed initial scope of its market investigation into public cloud infrastructure services (cloud services), including potential remedies, should competition problems be found during its investigation.
The market was referred to the CMA for an investigation by Ofcom, following its market study, which identified features that make it difficult for UK businesses to switch and use multiple cloud suppliers. Ofcom was particularly concerned about the position of Amazon and Microsoft as leaders in the £7.5 billion cloud services market in the UK.
Cloud services allow remote access to computing resources on demand and over a network. They are being rapidly adopted by businesses across the UK and have become an essential part of how many vital services are delivered to consumers, including banking, retailing, streaming and communications. The CMA’s investigation will examine the cloud services market and consider whether there are competition concerns and, if so, what interventions could improve the supply of these important services for UK customers.
The issues statement outlines the proposed initial scope of the CMA’s investigation, drawing on the three features of the market Ofcom was most concerned about plus the impact, if any, of software licensing practices on cloud competition.
The CMA’s investigation will examine:
Kip Meek, chair of the CMA’s inquiry group, said:
The CMA’s independent inquiry group is seeking views from interested parties on the issues identified and whether there are other concerns which should also be investigated.
Responses to the issues statement should be sent to CloudMI@cma.gov.uk. The consultation is open until Thursday 9 November 2023. The inquiry group will consider the views it receives as part of its ongoing investigation and will reach a final conclusion by April 2025.
For more information, visit the Cloud Services Market Investigation case page.
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