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UK regulator launches investigation into Amazon and Microsoft in cloud market


On Wednesday, the UK’s Communications Authority stated it was proposing an investigation into the cloud market as an investigation by the regulator discovered practices and options that might prohibit competitors, and that it was significantly involved concerning the practices of Amazon AMZN.
+1.50%
and Microsoft MSFT,
-0.02%
due to their dominant market place.

The regulator stated competitors might worsen additional within the UK’s economy-critical digital market if it’s not addressed. Excessive information expenses, dedicated spending reductions and technical limitations make it troublesome for enterprise prospects to modify cloud suppliers or use a number of suppliers, it stated.

Areas of concern embody exit charges, technical restrictions on interoperability and rebates for dedicated bills.

Within the UK, Amazon Net Providers and Microsoft have a mixed market share of 60%-70%, with Google their closest competitor at 5%-10%, in line with Ofcom.

Ofcom stated it had proposed referring the cloud infrastructure market to the Competitors and Markets Authority for an investigation.

Suggestions is invited till Could 17, and the ultimate report is scheduled to be revealed no later than October 5.

E-mail Kyle Morris at kyle.morris@dowjones.com



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