The UK's Competition and Markets Authority (CMA) has uncovered alleged violations by Microsoft and Amazon in the cloud services market.
Allegations of Anticompetitive Practices
The CMA announced an investigation into Microsoft and Amazon, claiming that both companies abuse their dominant position in the cloud infrastructure market. The authority highlighted serious issues related to market distortion and unfair contracts.
Issues with Contracts and Pricing
The regulator noted that high egress fees and contracts limiting provider switching create barriers for competitors. This complicates the growth and development of other market players. Additionally, the impact of Microsoft's licensing terms on the competitiveness of other platforms is under discussion.
CMA's New Initiatives and Implications
The CMA is pushing for a formal investigation under the new Digital Markets, Competition and Consumers (DMCC) Act. If Microsoft and Amazon are designated as strategic market players, they could face new obligations aimed at ensuring greater market accessibility for smaller companies.
The CMA's investigation could lead to significant changes in the cloud technology market, particularly for new entrants and startups, impacting future competitiveness and innovation in the sector.
