© Reuters. 3D printed clouds and collectible figurines are seen in entrance of the Microsoft Azure cloud service emblem on this illustration taken February 8, 2022. REUTERS/Dado Ruvic/Illustration
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By Martin Coulter and Foo Yun Chee
LONDON (Reuters) – British media regulator Ofcom will this week push for an antitrust investigation into Amazon (NASDAQ:) and Microsoft (NASDAQ:)’s dominance of the UK’s cloud computing market, based on two sources accustomed to the matter.
The advice, first issued by Ofcom in April, will stay within the physique’s ultimate report on the matter, set to be printed on Thursday, one of many sources mentioned.
Between them, Amazon and Microsoft get pleasure from a mixed market share of 60-70%. In the meantime, their closest competitor, Alphabet (NASDAQ:)’s Google, has round 10%.
The watchdog beforehand mentioned it had thought-about referring the marketplace for investigation by the CMA, the British competitors regulator.
Ofcom warned the present state of Britain’s cloud computing market made it troublesome for some present prospects to discount for a superb cope with their supplier.
Technical restrictions and reductions encouraging prospects to maintain utilizing a single supplier for all their wants, even when higher alternate options have been accessible, could possibly be thought-about anti-competitive, the physique mentioned in a report earlier this 12 months.
“We’re involved that constraints on prospects’ capability to make use of multiple supplier might make it more durable for smaller cloud suppliers to win enterprise and compete with the market leaders,” it learn.
Each Amazon and Microsoft beforehand mentioned they might proceed working with Ofcom forward of the publication of its ultimate report.
Amazon, Microsoft, and Ofcom didn’t instantly reply to requests for remark. A spokesperson for the CMA declined to remark.
