The UK’s competition regulator has extended its investigation into the cloud market.
- The Competition and Markets Authority (CMA) has postponed its report release by four months.
- The delay allows further exploration of complex competition issues, including licensing practices.
- Google has voiced criticism of Microsoft’s market conduct, claiming anti-competitive behaviour.
- Amazon supports Google’s stance, highlighting historic dissatisfaction with Microsoft’s practices.
The Competition and Markets Authority (CMA) has decided to extend the deadline for its comprehensive report on the UK’s cloud market. Originally due on 4 April 2025, the updated timeline now stipulates a release by 4 August 2025. This extension reflects the necessity to delve into more comprehensive analyses regarding complex competition issues.
The CMA’s inquiry has highlighted the need to investigate additional theories of harm that have not been previously examined in depth. This includes a particular focus on the licensing practices theory of harm, which was not thoroughly addressed in Ofcom’s prior market study.
In its investigation, the CMA has received extensive submissions and evidence. Some of these were provided after the initial deadline, necessitating more time for detailed evaluation. This approach underscores the depth of the issues being scrutinised to ensure a thorough and data-driven analysis.
In a rare public critique, Google has criticised Microsoft for allegedly impeding customer choice in the UK cloud market. Google contends that Microsoft’s software licensing practices are restrictive, potentially altering the competitive balance in Microsoft’s favour. Such restrictions are seen to hamper Google’s and others’ ability to compete fully.
Amazon’s AWS has echoed Google’s concerns, citing a longstanding dissatisfaction among cloud providers and customers concerning Microsoft’s business conduct. AWS describes Microsoft’s actions as artificially imposed and suggests they can be quickly rectified.
Microsoft has responded, challenging the CMA’s emerging views. The company claims these views overlook tangible evidence illustrating the dynamic and rapidly changing nature of the cloud market. Microsoft maintains that the market remains competitive and evolving, despite these allegations.
A report by Ofcom last year pointed out that the UK cloud market is primarily dominated by three main players: Amazon and Microsoft each hold about 30-40% of the market share, while Google accounts for roughly 10%. Concerns were raised over potentially unfair practices that could hinder smaller providers from competing effectively.
The extended timeline for the CMA’s report is crucial for addressing complex market dynamics and ensuring a comprehensive evaluation.
