Source URL: https://news.slashdot.org/story/25/01/28/1411257/cloud-services-market-is-not-working-says-uk-regulator?utm_source=rss1.0mainlinkanon&utm_medium=feed
Source: Slashdot
Title: Cloud Services Market Is ‘Not Working,’ Says UK Regulator
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Summary: The UK’s Competition and Markets Authority (CMA) has identified significant competition issues in the cloud services market, which is predominantly controlled by Amazon Web Services and Microsoft. This lack of competition is expected to raise costs and hinder innovation for UK businesses. The CMA proposes closer scrutiny of these key players through “strategic market status.”
Detailed Description: The report issued by the UK’s competition watchdog outlines several critical points regarding the cloud services market:
– **Market Control**: Amazon Web Services (AWS) and Microsoft Azure each hold a substantial share, approximately 40%, of the UK cloud services market.
– **Impact on Businesses**: The CMA’s provisional findings suggest that this oligopoly stifles competition, leading to potentially higher costs for businesses that rely on cloud services and a slowdown in innovation.
– **Strategic Market Status**: To combat these issues, the CMA recommends that both AWS and Microsoft be designated with “strategic market status.” This classification would empower the authority to perform deeper oversight into business practices.
– **Specific Concerns**: The regulator highlights particular practices that require scrutiny, including:
– Microsoft’s software licensing strategies, which may impose unnecessary restrictions or costs.
– AWS’s data transfer fees, which could be structured in ways that disincentivize efficient data management.
This development is particularly relevant for professionals involved in cloud computing security and infrastructure, as it underscores the regulatory environment’s evolving nature and its implications for service availability, cost management, and competitive innovation in the cloud sector. Additionally, understanding these dynamics is essential for compliance professionals who need to navigate the legal frameworks shaping the industry.