The British cloud computing market “doesn’t work well” and should be considered for the two main players in this section, Microsoft and Amazon, according to the competition watchdog.
A final report from an independent inquiry group (CMA) has shown that Microsoft and Amazon’s web services (AWS) are damaging in the cloud computing sector.
Microsoft reports that some of its software products have a “significant market power” with some of its software products.
It has raised concerns about how to charge Microsoft Amazon and Google to use its software, which is said to increase its costs.
The report recommends that the CMA use new powers to provide Microsoft and AWS so -called strategic market status to eliminate “harmful to the competition we have found”.
According to the report, “this allows the CMA to impose the targeted and needed interventions needed to address the concerns we have identified, including the characteristics of the dangers of designing effective interventions in the market.”
The CMA will now consider whether they can be delivered to them “strategic market”, but this will not start until 2026 because it focuses on the suggestions announced last week to allocate this situation to Google and Apple through its mobile operating systems.
The panel found that non -competitiveness in the £ 9 billion cloud sector could lead to higher costs, lower selection and lower quality of services for jobs throughout the UK.
Microsoft’s AWS and Azure each have about 40 % of the consumer costs in the market, with Google in the third place.
The report said: “Microsoft’s licensing practices have a negative impact on AWS and Google competitiveness in the supply of cloud services, especially in competition for customers who buy cloud services that use Microsoft’s software as input.
“As a result, Microsoft is facing competitive restrictions than AWS and Google, its most important competitors, which reduce competition in cloud service markets.”
The annual results of Microsoft on Wednesday showed that the thriving sales of azure cloud computing trading shows its $ 75 billion (£ 57 billion) annually.
“The latest release of the CMA panel again loses the brand and is ignored that the cloud market has never been so dynamic and competitive, with a record and rapid change, AI,” a spokesman for Microsoft said.
“Its recommendations to cover Google, one of the fastest cloud market participants, fail,” he said.
“Microsoft is eagerly looking forward to working with the digital market unit to a conclusion that is more accurately reflecting the current cloud competition that is in favor of the UK customers.”
AWS spokesman said the report “ignores clear evidence of strong competition in the UK information technology industry.”
“The action provided by the query group is unauthorized and weakens significant investment and innovation that has previously benefited from hundreds of thousands of British businesses,” they added.
“This requires Britain to foresee a supervisory forecast for the United Kingdom when jobs need to be monitored for Britain to maintain international competition.”
But Google welcomed the findings and called for “fast action”.
Chris Lindsi, Vice President of Customer Engineering Google Cloud in the EMEA area (Europe, the Middle East and Africa), said: “The definitive finding that the restrictive license can damage cloud customers and competition is a watershed moment for the UK.
“Rapid action from the CMA (CMA) digital markets to ensure fair costs and selection, innovation and economic growth in the UK is essential to ensure British jobs.”
The Computer and Communications Industry Association (CCIA) warned that there is a danger that “very extensive and prescribed intervention” recommends that it can prevent investment in the UK and access new technology.
“If the CMA goes through these changes, it will weaken the UK competition because business users will no longer access the latest cloud services,” said Matthew Sinclair, a senior CCIA chief executive.
