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UK to Rein in Microsoft, AWS with 'Strategic Market Status'

UNITED KINGDOM, JUL 31 – The Competition and Markets Authority found Microsoft and Amazon control 30-40% of the infrastructure-as-a-service market, using fees and licensing to limit rivals and block entry.

  • Britain's Competition and Markets Authority recommended designating Microsoft and Amazon Web Services as strategic market players in the cloud sector due to their dominance.
  • This follows findings that both firms hold roughly 30-40% of the UK's Infrastructure-as-a-Service market and use licensing and technical restrictions that hinder competition.
  • The CMA report highlighted that UK businesses pay about £500 million annually more for cloud services than in fully competitive markets, partly due to contractual lock-in and limited alternatives.
  • Mark Boost of cloud provider Civo criticized the CMA for insufficient urgency, while Microsoft expressed willingness to work with regulators, and AWS disputed the report's competition claims.
  • The CMA Board plans to consider its next steps in early 2026, and the designation could enable targeted regulatory interventions addressing market power and pricing concerns.
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Tech Radar broke the news in United Kingdom on Thursday, July 31, 2025.
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