The UK’s Competition and Markets Authority (CMA) is reportedly exploring a significant intervention into the cloud computing market, focusing on the dominant positions of Amazon Web Services (AWS) and Microsoft Azure. According to a recent article in The Register, the CMA is considering designating AWS and Microsoft Azure as having “strategic market status” (SMS). This designation, if implemented, could pave the way for a range of new regulatory measures aimed at fostering greater competition within the UK’s vital cloud sector.
The CMA’s investigation into the cloud market has been ongoing, with a particular interest in the market share and influence held by hyperscale cloud providers. AWS and Microsoft Azure are widely recognized as the two largest players, controlling a substantial portion of the market for cloud infrastructure services. Concerns have been raised by various stakeholders, including smaller cloud providers and businesses that rely on these services, regarding potential barriers to entry, pricing practices, and the ability of these dominant firms to disadvantage competitors.
Designating AWS and Microsoft Azure as having strategic market status would signify that the CMA views their presence and influence as critical to the functioning of the digital economy, and that their market power warrants closer scrutiny. This status is not a common one, and its application to cloud providers would represent a notable development in the CMA’s approach to regulating digital markets.
While the exact nature of the potential regulatory measures remains to be seen, a SMS designation typically allows a competition authority to impose specific remedies. These could include requirements for greater interoperability between services, restrictions on bundling or self-preferencing, increased transparency in pricing and contractual terms, or even obligations to grant access to certain interfaces or data. The aim would be to create a more level playing field, enabling smaller competitors to offer viable alternatives and giving businesses more choice and flexibility in their cloud adoption strategies.
The report suggests that the CMA’s move is partly a response to ongoing market dynamics and feedback from industry participants. The increasing reliance on cloud services across all sectors of the UK economy makes ensuring a competitive and innovative cloud market a priority for economic growth and digital resilience. By potentially implementing these measures, the CMA aims to prevent any undue concentration of power that could stifle innovation or lead to higher costs for businesses.
This development underscores the growing global trend of regulators paying closer attention to the power and practices of major technology firms, particularly in digital infrastructure. The CMA’s potential actions in the cloud sector could set a precedent for other jurisdictions looking to address similar market concentration challenges. Businesses and industry observers will be closely watching the CMA’s next steps as it considers how to best promote a healthy and competitive cloud ecosystem in the United Kingdom.
Brit watchdog pushes to rein in Microsoft and AWS with ‘strategic market status’
AI has delivered the news.
The answer to the following question is obtained from Google Gemini.
The Register published ‘Brit watchdog pushes to rein in Microsoft and AWS with ‘strategic market status” at 2025-07-31 13:34. Please write a detailed article about this news in a polite tone with relevant information. Please reply in English with the article only.