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Ofcom said it had identified features that made it more difficult for UK businesses to use multiple cloud suppliers. Amazon Web Services (AWS) and Microsoft had a combined 70-80% share of Britain's public cloud infrastructure services market in 2022, Ofcom said. Microsoft said it was committed to ensuring the UK cloud industry remained innovative and highly competitive. The CMA welcomed the move, saying effective competition in the 7.5 billion pound ($9.1 billion) UK market was essential. Google Vice President Amit Zavery said Ofcom's referral demonstrated the need to create an open cloud market with no vendor lock-in.
Persons: Dan Ridsdale, Edison, Dado Ruvic, Fergal Farragher, Amit Zavery, Yadarisa, Paul Sandle, Foo Yun Chee, Mark Potter, Jan Harvey, Jacqueline Wong, Jane Merriman Organizations: CMA, Microsoft, Ofcom, Amazon Web Services, Google, U.S . Federal Trade Commission, Markets, REUTERS, Cloud Infrastructure Services, Amazon, MICROSOFT, Activision Blizzard, Reuters, Thomson Locations: Britain, France, Japan, The Netherlands, South Korea, China, EU, Europe, Bengaluru, London, Brussels
Ofcom said it had identified features that made it more difficult for UK businesses to use multiple cloud suppliers. Amazon Web Services (AWS) and Microsoft had a combined 70-80% share of Britain's public cloud infrastructure services market in 2022, Ofcom said. Microsoft said it was committed to ensuring the UK cloud industry remained innovative and highly competitive. UK businesses told Ofcom they were concerned it was too difficult to switch or mix and match cloud providers. Google vice president Amit Zavery said Ofcom's referral demonstrated the need to create an open cloud market with no vendor lock-in.
Persons: Dado Ruvic, Ofcom, Fergal Farragher, Amit Zavery, Yadarisa, Paul Sandle, Lincoln, Susan Fenton, Mark Potter, Jan Harvey Organizations: REUTERS, CMA, Ofcom, Microsoft, Amazon Web Services, Google, Markets, AWS, Reuters, Thomson Locations: Bengaluru, London
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailUK communication regulator calls for 'fair playing field' in cloud market as Amazon, Microsoft face probeFergal Farragher, consumer policy director at Ofcom, discusses the reasons why the regulator referred Amazon and Microsoft to the U.K. competition watchdog for investigation.
Persons: Fergal Farragher Organizations: Microsoft, Ofcom
Britain's anti-competition regulators have been tasked with investigating Microsoft and Amazon 's dominance of the cloud computing market. Media watchdog Ofcom on Thursday referred its inquiry for further investigation to the Competition and Markets Authority, kickstarting the process. "So, we're referring the market to the CMA for further scrutiny, to make sure business customers continue to benefit from cloud services." Ofcom is concerned that so-called "hyperscalers" like Amazon Web Services and Microsoft Azure are limiting competition in the cloud computing market. Combined, Amazon, Microsoft and Google generate roughly 81% of revenues in the U.K.'s cloud infrastructure services market, according to Ofcom, which estimates the market to be worth £15 billion ($18.2 billion).
Persons: Fergal Farragher Organizations: Ofcom, Microsoft, Media, Competition, Markets Authority, Amazon, CMA, Web Services, Google
LONDON (AP) — Concerns from regulators about the dominance of Amazon and Microsoft in Britain’s cloud computing market have triggered a investigation into the competitiveness of the key industry. The U.K. communications regulator Ofcom said Thursday that its yearlong study of the cloud communications services market found features that could limit competition. Cloud computing uses data centers around the world to store photos and emails or run software. Ofcom asked the U.K. antitrust watchdog, the Competition and Markets Authority, to take a closer look at the 7.5 billion-pound ($9 billion) cloud market. “We are committed to ensuring the UK cloud industry remains innovative, highly competitive and an accelerator for growth across the economy," Microsoft said in a statement.
Persons: , Fergal Farragher Organizations: Microsoft, Ofcom, Markets Authority, , CMA, Amazon, Google, Web Services
London CNN —Britain’s media and communications regulator Ofcom says it has “significant concerns” that Amazon and Microsoft could be harming competition in the market for cloud services. In a statement Wednesday, Ofcom said it was “proposing to refer” the cloud services market to the Competition and Markets Authority, the UK antitrust regulator, for further investigation. Cloud services are delivered to businesses and consumers over the internet and include applications such as Gmail and Dropbox. According to Ofcom, Amazon (AMZN) Web Services and Microsoft’s Azure have a combined UK market share of 60%-70% in cloud services. “We remain committed to ensuring the UK cloud industry stays highly competitive,” the spokesperson added.
Britain's cloud market needs competition probe, regulator says
  + stars: | 2023-04-05 | by ( ) www.reuters.com   time to read: +1 min
LONDON, April 5 (Reuters) - Britain's Ofcom said it planned to ask the competition regulator to investigate cloud services, a market dominated by Amazon (AMZN.O) and Microsoft (MSFT.O). Amazon and Microsoft have a combined market share of 60-70%, while Alphabet's Google (GOOGL.O) is their closest competitor with 5-10%. "High barriers to switching are already harming competition in what is a fast-growing market," said Ofcom director Fergal Farragher in a statement. "We remain committed to ensuring the UK cloud industry stays highly competitive, and to supporting the transformative potential of cloud technologies to help accelerate growth across the UK economy," said a spokesperson for Microsoft. Ofcom, which launched its probe into cloud services last year, said it would publish a final report setting out its findings and recommendations by October.
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