Cloudy with a Chance of Monopoly: UK Regulator Takes Aim at Microsoft and AWS
Britain’s competition watchdog is eyeing Microsoft and AWS for their cloud dominance, proposing “strategic market status” to curb their sway. The watchdog’s investigation found UK businesses shell out an extra £500 million annually due to less competition. Meanwhile, Microsoft and AWS argue the market is dynamic, not monopolistic.
Hot Take:
In the world of cloud computing, Microsoft and AWS are apparently the giant elephants in the room, and the UK’s competition regulator is finally saying, “Hey, we can’t ignore these massive pachyderms any longer!” But don’t hold your breath for any quick action; by the time the regulatory ball starts rolling, AI might be running our coffee machines!
Key Points:
- The UK’s CMA is proposing to designate Microsoft and AWS with strategic market status (SMS) due to their dominance in the cloud market.
- The CMA’s investigation revealed that Microsoft’s and AWS’s market power results in expensive cloud services for UK businesses.
- Microsoft’s licensing practices are criticized for making it difficult to switch to other providers.
- The final report is expected by early 2026, leading to frustration among those wanting swift regulatory action.
- Microsoft and AWS disagree with the findings, arguing that the market is dynamic and competitive.
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