UK CMA reexamines competition in cloud services
A review group within the Competition and Markets Authority (CMA) concluded last year that the strong market positions of Amazon and Microsoft were limiting competition in cloud computing. The regulator highlighted Microsoft in particular, arguing that its licensing structure for widely used enterprise tools such as Windows Server and Microsoft 365 can make it more expensive for customers to run those products on competing cloud platforms.
Renewed scrutiny of cloud market practices
Authorities in the European Union and the United States are also examining competition in cloud infrastructure services, underscoring growing global concern about the market power of major providers.
According to the CMA, both Microsoft and Amazon have begun making “material changes” to some pricing policies following earlier engagement with regulators. Together, the two companies account for roughly 30–40% each of the global cloud market, offering services such as computing power, storage, and networking. Google remains the third major provider but holds a smaller share estimated between 5% and 10%.
Possible designation of strategic market status
The CMA said its latest probe into Microsoft’s broader business-software ecosystem could lead to the company being designated as having “strategic market status.” Such a classification would allow the regulator to introduce targeted rules governing licensing practices to improve competition.
CMA chief executive Sarah Cardell said the authority is taking a practical and flexible approach to produce meaningful results for customers as quickly as possible.
She noted that progress has already been made in discussions with Microsoft and Amazon on reducing charges tied to transferring data between platforms and improving interoperability between cloud services. Further changes are expected in the coming months.
Industry response
Microsoft said the adjustments it has agreed to with the CMA focus on easing costs related to data transfers, switching providers, and ensuring systems work smoothly across multiple cloud environments.
Company vice chair and president Brad Smith said the updates aim to help customers deploy and manage workloads across different cloud providers with greater confidence and fewer barriers.
Amazon also said the measures it has taken — including improving support for multicloud strategies and simplifying data portability — reinforce its commitment to giving customers flexibility and choice when selecting cloud providers.
