Archive · 31 Jul 2025
UK Regulator Finds Microsoft, Amazon Stifling Cloud Competition
The UK government is looking into whether Microsoft and Amazon are too dominant in the cloud computing market.
They believe these companies have so much power that it's hard for others to compete.
They found that Microsoft's rules for licensing software make it difficult for Amazon and Google to offer services.
To fix this, the government may give Microsoft and Amazon a special status to control how they do business.
Microsoft's cloud service, Azure, is growing a lot, showing how important this market is.
The UK's CMA found Microsoft and AWS hold significant market power in cloud services.
This power makes it difficult for alternative suppliers to compete.
Microsoft's licensing practices negatively affect AWS and Google.
The CMA recommends investigating Microsoft and AWS for strategic market status.
Microsoft's Azure cloud business grew 39% year-on-year and is expected to grow 37% next quarter.
- Who
- Microsoft, Amazon Web Services (AWS), Google, and the UK's Competition and Markets Authority (CMA).
- What
- The UK's CMA found Microsoft and AWS hold too much power in the cloud services market.
- When
- The report was published on July 31; the investigation will be considered by the CMA’s board in early 2026.
- Where
- United Kingdom.
- Why
- To assess the competitiveness of the cloud services market and ensure fair competition.
Impact of Market Dominance
Industry Leader Practices
Market Competition
Impact of Market Dominance
Restricts Competition: Hinders the ability of smaller cloud service providers to enter and thrive.
Industry Leader Practices
Industry Leaders: Microsoft and AWS have invested heavily in infrastructure.
- Regulatory Body
- UK's Competition and Markets Authority (CMA)
- Cloud Services Examined
- IaaS and PaaS
- Azure Growth (Year-on-Year)
- 39%
- Azure Growth (Next Quarter - expected)
- 37%
- Microsoft Quarterly Revenue
- $76.44 billion
