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yesterday

CMA Confirms Targeted Interventions for AWS and Microsoft, Proposes Strategic Market Status

Under the Digital Markets, Competition and Consumers Act 2024 the CMA plans to secure binding conduct requirements for the two cloud giants through strategic market status designation.

Microsoft Azure
Microsoft is now the world’s second company to reach a $4 trillion valuation, due in large part to Azure’s success.
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Figurines with computers and smartphones are seen in front of Microsoft Corporation logo in this illustration taken, February 19, 2024. REUTERS/Dado Ruvic/Illustration/File Photo

Overview

  • The CMA’s final report finds AWS and Microsoft together account for up to 70% of UK cloud spending, granting them sustained market dominance and weak competitive constraints.
  • Regulators identified technical and commercial barriers that lock customers into the two providers and hinder multicloud adoption.
  • Microsoft’s practice of charging higher fees to run its software on rival clouds was flagged as reducing competitive pressure from AWS and Google Cloud.
  • The CMA recommended designating both firms as Strategic Market Status suppliers to impose bespoke, targeted remedies and review outcomes pending a board decision in early 2026.
  • Microsoft and AWS dismissed the report as misplaced and warned intervention could backfire while Google Cloud and industry advocates urged swift action to lower costs and spur innovation.