Overview

• The CMA’s final report finds Microsoft and AWS control up to 70% of UK cloud spending and wield significant unilateral power that harms competition.
• The report cites technical and commercial obstacles, including Microsoft’s higher fees for running its software on rival clouds, as measures that lock customers in and weaken competition.
• It recommends designating both firms as Strategic Market Status suppliers under the Digital Markets, Competition and Consumers Act 2024 to enable tailored interventions.
• The CMA board will consider the SMS designation in early 2026, potentially imposing conduct requirements on pricing, licensing and interoperability.
• Microsoft and AWS have disputed the findings as overlooking market dynamism, while Google Cloud and pro-competition advocates are calling for swift regulatory action.