Amazon and Microsoft to face cloud computing competition probe

The UK's cloud computing market is to face a competition probe over concerns it is being dominated by Amazon and Microsoft.

Media watchdog Ofcom said the two make up 70-80% of the sector in the UK, while closest rival Google has 5-10%.

Ofcom had said in April it was worried a lack of competition made it difficult for businesses to switch providers.

It has referred the sector to the UK's Competition and Markets Authority (CMA) to look into the issue.

Cloud computing broadly refers to the storage of data online that can be accessed anywhere at any time.

The services are used by businesses across the UK, and Ofcom estimated that in 2022 the cloud services market in the UK was worth up to £7.5bn.

"Many businesses now completely rely on cloud services, making effective competition in this market essential," said CMA chief executive Sarah Cardell.

"Strong competition ensures a level playing field so that market power doesn't end up in the hands of a few players - unlocking the full potential of these rapidly evolving digital markets so that people, businesses, and the UK economy can get the maximum benefits.

"The CMA's independent inquiry group will now carry out an investigation to determine whether competition in this market is working well and if not, what action should be taken to address any issues it finds."

The CMA said it would conclude its investigation by April 2025.