Microsoft and Amazon face scrutiny from UK regulators over cloud services

Companies and other interested parties have until May 17 to respond to Ofcom's consultation

A referral to the UK's competition watchdog on Amazon and Microsoft's alleged damage of the market for online cloud services has been made due to "significant concerns" that large tech firms are misusing their power. Because of Amazon and Microsoft's dominant market positions, the British communications regulator, Ofcom, stated that it was seeking to submit the entire industry to the Competition and Markets Authority (CMA). After discovering "behaviors by some providers that could raise barriers to switching and use of multiple providers," it stated that it had "significant concerns."

Companies and other interested parties have until May 17 to respond to Ofcom's consultation, and on October 5 the regulator will decide whether or not to submit the industry to the CMA. The UK's top internet businesses would be subject to even greater regulatory scrutiny if the cloud services industry were to be looked into. The CMA has previously stated it will strengthen its authority to probe major internet companies under its digital markets branch, while the Financial Conduct Authority is looking into whether businesses like Apple, Google, and Amazon could undermine competition in Britain's financial services sector. According to Ofcom, the alleged practises make it challenging for clients to change providers, to use many at once, and for smaller providers to compete.