The Competition and Markets Authority (CMA) has postponed its report on the UK cloud market.
- The original deadline of April 2025 has been extended to August 2025.
- The extension is to allow a deeper investigation into potential market harms.
- Google and Amazon have expressed concerns about Microsoft’s licensing practices.
- The UK cloud market is largely dominated by three major companies.
The UK’s Competition and Markets Authority (CMA) has announced a significant delay in the publication of its anticipated report on the state of the UK’s cloud market. Originally scheduled for release on 4 April 2025, the deadline has now been shifted to 4 August 2025. This extension, according to the CMA, is necessitated by the need for a more thorough exploration of the issues involved, particularly concerning various theories of harm that have emerged.
Central to the CMA’s extended inquiry are concerns related to licensing practices, which have not been exhaustively investigated in previous market studies, such as that conducted by media regulator Ofcom. The CMA highlighted that the postponement will enable a more comprehensive analysis of complex issues, with particular attention given to the submissions and evidence that were provided beyond the initial deadline for evidence submission.
A focal point of the investigation is the criticism directed at Microsoft by its major competitors. Google, in a rare public statement, accused Microsoft of imposing restrictive software licensing practices that significantly impact customer choice and potentially skew the market dynamics in Microsoft’s favour. This sentiment was echoed by Amazon Web Services (AWS), which underscored a history of dissatisfaction among cloud providers regarding Microsoft’s business conduct.
The CMA’s investigation also considers previous concerns stated in October of the previous year, which pointed to the dominant market positions held by major companies like Amazon and Microsoft. These concerns relate to the alleged disincentivisation of clients from engaging with smaller cloud service providers. The cloud market in the UK is heavily concentrated, with Amazon and Microsoft each holding approximately 30-40% of total revenues, while Google accounts for about 10%.
The broader implications of these market dynamics are significant, as they not only affect the competitive landscape but also potentially impact the choices available to UK consumers. The investigation by the CMA is keenly focused on ensuring fair competition and addressing the potential barriers to market entry that may be artificially imposed by leading providers.
The CMA’s investigation into the UK cloud market emphasizes the need for a fair and competitive environment.
