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Dominance of Amazon and Microsoft in cloud harming competition, UK says

Published by Global Banking & Finance Review

Posted on July 31, 2025

1 min read

· Last updated: January 22, 2026

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Dominance of Amazon and Microsoft in cloud harming competition, UK says
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LONDON (Reuters) -Amazon and Microsoft's dominant position in cloud computing has an adverse effect on competition, exacerbated by technical and commercial barriers to switching, an inquiry group from

UK Inquiry Highlights Amazon and Microsoft's Cloud Market Dominance

Impact of Cloud Dominance on Competition

LONDON (Reuters) -Amazon and Microsoft's dominant position in cloud computing has an adverse effect on competition, exacerbated by technical and commercial barriers to switching, an inquiry group from Britain's antitrust regulator said.

CMA's Strategic Market Status Consideration

The Competition and Markets Authority (CMA) inquiry group said on Thursday the regulator should investigate whether to consider designating the two companies with strategic market status (SMS) in cloud services, which would give it power to impose tailored conditions.

Market Share of Major Providers

It noted, however, that the CMA has said it will not consider launching future SMS investigations until early next year.

Google is the third main cloud services provider, but it has a much smaller share than its rivals.

(Reporting by Paul Sandle; editing by Sarah Young)

Key Takeaways

  • Amazon and Microsoft dominate the cloud market.
  • UK's CMA considers strategic market status for these companies.
  • Technical and commercial barriers hinder competition.
  • Google holds a smaller market share in cloud services.
  • CMA to decide on future investigations next year.

Frequently Asked Questions

What did the UK inquiry group conclude about Amazon and Microsoft?
The inquiry group stated that the dominant position of Amazon and Microsoft in cloud computing adversely affects competition, worsened by barriers to switching.
What is the CMA's stance on future investigations?
The CMA has indicated that it will not consider launching future strategic market status investigations until early next year.
How does Google compare to Amazon and Microsoft in the cloud market?
Google is the third main cloud services provider but holds a significantly smaller market share compared to Amazon and Microsoft.

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