Microsoft has pushed back against the UK's Competition and Markets Authority (CMA) after the regulator raised concerns about potential anti-competitive behaviour in the cloud computing sector.
The tech giant argues that its collaboration with rivals Amazon Web Services (AWS) and Google Cloud fosters healthy competition, countering claims of market dominance.
Regulatory Scrutiny Intensifies
The CMA's investigation into the cloud industry highlighted worries that Microsoft and AWS collectively control too much of the market, potentially stifling innovation and choice for consumers.
Microsoft responded by stating: "Our partnerships with other major players demonstrate a commitment to maintaining a competitive environment where customers have multiple options."
Market Share Under the Microscope
Recent data shows AWS leading the cloud infrastructure market with about 32% share, followed by Microsoft Azure at 23%, and Google Cloud at 10%. The remaining 35% is distributed among smaller providers.
Industry experts suggest this concentration could lead to:
- Higher prices for cloud services
- Reduced innovation among smaller competitors
- Limited options for UK businesses
Microsoft's Defence Strategy
The Redmond-based company points to several initiatives designed to promote fairness:
- Interoperability agreements with competitors
- Transparent pricing structures
- Support for open-source cloud technologies
A CMA spokesperson told The Independent: "We welcome all submissions as part of our ongoing investigation and will consider Microsoft's response carefully before making any final determinations."
The regulator is expected to publish its final report later this year, which could lead to significant changes in how cloud services operate in the UK market.
