UK: Ofcom to recommend probe over Amazon, Microsoft's cloud computing dominance

British media regulator Ofcom is preparing to push for an antitrust investigation into Amazon and Microsoft's dominance of cloud computing market in the UK, reported Reuters citing sources. Amazon and Microsoft dominate UK's cloud computing market with a combined market share of 60-70 per cent. Their closest competitor Google has about 10 per cent market share.

Ofcom signalled its push for such an antitrust probe in the month of April. Reuters reported that this will remain in the watchdog's final report on this matter. The report is slated to be published on Thursday (October 5), reported Reuters.

Ofcom has said previously that it had considered a referral of the market for investigation by the CMA, the competition regulator in the UK.

Ofcom says that the current situation of Britain's cloud computing market has made it difficult for existing customers to bargain for a good deal with their cloud computing service provider.

The regulator said in a report earlier this year that technical restrictions and discounts encouraging customers to keep using a single provider for all their needs, even when better alternatives were available, could be considered anti-competitive.

"We are concerned that constraints on customers' ability to use more than one provider could make it harder for smaller cloud providers to win business and compete with the market leaders," it read.

Amazon and Microsoft have previously said that they will continue working with Ofcom ahead of publication of its final report.

Microsoft earlier had submitted a 58-page response saying that an investigation will ultimately be harmful to consumers.

“It would be a particularly unfortunate outcome if UK businesses and public sector customers faced less vibrant and competitive cloud solutions on a global stage than those available to their rivals in the EU, the U.S. and China," it said.

(With inputs from agencies)

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