CMA launches investigation into Microsoft amid new cloud competition measures
The regulator has raised concerns that the vendor’s licensing practices are affecting the UK cloud market
The Competition and Markets Authority (CMA) has unveiled new measures to boost competition in the UK’s cloud and business software markets, including a new investigation into Microsoft.
The regulator said it will launch a Strategic Market Status (SMS) probe into the vendor’s business software ecosystem in May, focusing on concerns that its licensing practices may be restricting competition in cloud.
If designated, the watchdog would gain stronger powers to intervene.
Microsoft and Amazon have agreed to changes around cloud egress fees and interoperability, aimed at making it easier and cheaper for organisations to switch providers or operate across multiple cloud platforms, stated the CMA.
It added it will continue working with both companies to make sure the changes deliver tangible benefits for UK companies and the public sector but explained that further steps are needed to improve switching and multi-cloud adoption.
Ensuring interoperability with Microsoft’s software will reportedly be key to enabling customers to adopt AI tools from multiple providers.
The CMA also said the measures are intended to improve choice and value for businesses and public sector organisations, adding that enabling easier switching and multi-cloud adoption will be critical as demand for cloud and AI services continues to rise.
Progress is set to be reviewed in six months.
“This announcement shows we’re not just responding to today’s concerns but getting ahead of emerging issues too,” said Sarah Cardell, chief executive of the CMA.
“Cloud remains central to our approach; we’ve seen real progress through our engagement with Microsoft and Amazon to drive meaningful improvements on egress fees and interoperability and we expect more action from them over the coming months.”
She added that the Microsoft probe will help address licensing concerns and support fair competition as AI becomes more central to business software.
“Through this package of actions, we’re driving changes across cloud and business software to make sure these markets are competitive and resilient for UK businesses and the public sector,” explained Cardell.
This move comes shortly after similar investigations were launched on the other side of the English Channel.
In November, the European Commission opened three probes into cloud computing services under the Digital Markets Act (DMA), two of which were to assess whether Amazon and Microsoft should be designated as “gatekeepers” for their cloud computing services, despite not meeting the DMA’s size, user number, and market position thresholds.