Press Release

Amazon Web Services and Microsoft oppose plans to refer the UK cloud market to a competition regulator

Thu 20 Jul 2023

In recent months, Ofcom has investigated the UK cloud services market amid concerns about the increasing dominance by the likes of Amazon Web Services (AWS), Google Cloud and Microsoft Azure.

There has been a proposal from Ofcom to refer the UK cloud market for investigation into anti-competitive behaviour, citing that AWS and Microsoft are currently the leading UK providers of cloud infrastructure services but may need to be investigated further.

Ofcom’s initial market research has revealed that some features and practices make it more difficult for customers to switch between or use multiple cloud providers, with the dominant position of Amazon Web Services and Microsoft in the industry being considered particularly problematic.

However Mark Appleton, Chief Customer Office at ALSO Cloud UK, commented that it is clear both Microsoft and Amazon continue to demonstrate their commitment to maintaining a high level of competitiveness in the UK cloud industry and to ensuring that cloud technologies continue to have a transformative influence on the economy of the UK.

“In the UK, customers can choose between various providers to meet their needs. In order to provide customers with the choice between different technologies, AWS and Microsoft has designed its cloud services to allow them to build the solution that is right for them based on the technology of their choice.

“Due to the rapid evolution and highly dynamic nature of cloud technology, any intervention could be negative and result in poor outcomes for UK businesses and the public sector. Suppose, for instance, UK customers were denied discounts or innovation due to interoperability requirements prioritising portability over innovation and differentiated value-added services,” Appleton concluded.

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