Google and Amazon have criticised Microsoft’s cloud practices, raising concerns over market competition.
- Google accused Microsoft of restricting customer choice and called for urgent action.
- Amazon supported Google’s stance, citing historical dissatisfaction with Microsoft’s conduct.
- The UK competition watchdog is investigating these claims within the cloud market.
- Microsoft denies the allegations, asserting strong competition dynamics.
Google and Amazon have joined forces to criticise Microsoft for what they describe as restrictive cloud practices that limit customer choice in the United Kingdom. Google has accused Microsoft of imposing software licensing restrictions that could “irreversibly tilt the market in Microsoft’s favour,” especially at a crucial moment for the cloud industry. The company argues that these technical barriers are exacerbating the issue, making it difficult for competitors to operate effectively.
Amazon’s AWS echoed Google’s concerns, pointing to a pattern of dissatisfaction among both cloud providers and customers regarding Microsoft’s behaviour. AWS described Microsoft’s conduct as “artificially imposed and easily fixed,” supporting the call for immediate intervention by regulatory bodies.
The remarks were made during a probe by the UK Competition and Markets Authority (CMA), which is examining the business practices of major cloud market players. Google, Microsoft, and Amazon’s AWS were invited to present evidence as part of this investigation, with a report expected to be published early next year. Google expressed agreement with the CMA’s views on the power dynamics at play within the industry, recognising Microsoft and AWS as dominant forces.
Conversely, Microsoft has dismissed the concerns, arguing that the CMA’s preliminary conclusions overlook “real world evidence” of a competitive and rapidly evolving market. Microsoft asserts that high customer satisfaction and intense competition among cloud services are driving down prices while substantial investments in AI technology are enhancing competitiveness across the sector. Furthermore, Microsoft claims that its software licensing fees do not significantly impact competitors’ operational costs, and there is sufficient margin for AWS and Google to compete with its Azure platform.
The issue arises amid increasing regulatory scrutiny of major cloud providers worldwide. Historically, the UK has scrutinised whether dominant players like Microsoft and Amazon have hindered competition, particularly with concerns over high exit fees and barriers to interoperability. An Ofcom study previously highlighted that the UK cloud market is predominantly controlled by Amazon, Microsoft, and Google, with Microsoft and Amazon sharing 60-80% of total revenues. The UK’s recent classification of data centres as critical national infrastructure signals an intent to bolster the sector’s growth, a move welcomed by AWS as it plans a significant investment in UK data infrastructure over the next five years.
The unfolding regulatory scrutiny may reshape the UK’s cloud market dynamics.
