The Competition and Markets Authority (CMA) has postponed the release of its report on the UK’s cloud market.
- The deadline has been extended from 4 April 2025 to 4 August 2025.
- This extension allows deeper investigation into issues of harm, including licensing practices not fully explored by Ofcom.
- Google has accused Microsoft of anti-competitive practices, highlighting licensing restrictions.
- Amazon’s AWS joins Google in criticising Microsoft’s impact on market competition.
The UK Competition and Markets Authority (CMA) has announced a delay in the publication of its detailed report on the state of the UK cloud market. Originally scheduled for release on 4 April 2025, the new date set for publication is 4 August 2025. This delay is attributed to the need for comprehensive investigation into additional theories of harm within the sector.
The CMA has expressed its commitment to conducting a deeper analysis of the complex issues that surfaced, particularly focusing on the licensing practices theory of harm, which had not been thoroughly examined in Ofcom’s prior market study. This decision follows the review of evidence and analyses submitted after the initial deadline, indicating the complexities involved in the inquiry.
Google has publicly criticised Microsoft, alleging that Microsoft’s software licensing practices significantly limit customer choice in the UK cloud market. According to Google, these restrictions are detrimental, potentially skewing the market in Microsoft’s favour at a crucial time. The company emphasised the importance of immediate actions to address these restrictive practices.
Amazon Web Services (AWS) has echoed Google’s sentiments, pointing out a longstanding dissatisfaction among cloud providers and customers regarding Microsoft’s behaviour. AWS claims that Microsoft’s conduct is intentionally restrictive and could be rectified easily, expressing a shared concern that the current practices unfairly benefit dominant market players.
Microsoft has countered these claims by suggesting that the CMA’s preliminary views on the competitive landscape do not align with the dynamic nature of the market. Microsoft argues that the market is evolving rapidly, and such criticisms do not consider the broader market dynamics.
An Ofcom study conducted last year highlighted the dominance of a few major players in the UK cloud market, with Amazon and Microsoft collectively generating roughly 60-80% of the total revenues, and Google contributing approximately 10%. These statistics underscore the significant influence these corporations hold within the market.
The CMA’s extended investigation underscores the complexities and competitive tensions within the UK’s cloud market.
