Overview

• After a 21-month probe, the CMA concluded that Microsoft and AWS control about 70% of UK cloud spending and have reaped returns above capital costs.
• The regulator identified high egress fees and restrictive licensing as lock-in mechanisms that raise costs and deter customers from switching.
• It has launched a formal investigation under the DMCC Act and plans to consider strategic market status designations in early 2026 to impose binding conduct requirements.
• Microsoft and AWS criticized the findings, arguing the UK cloud market remains dynamic and warning that stringent regulation could undermine investment and innovation.
• Google welcomed the report as a chance to lower costs for businesses and boost multi-cloud flexibility by enforcing greater interoperability.