UK CMA finds Microsoft and Amazon harms cloud competition

London – UK Competition Regulator on Thursday stated this Microsoft and Amazon Competitions in the field of cloud computing are harmful and call for a further probe within the strict new technological rules of the country.

Competition and markets have said market concentration and barriers to cloud -market entry have both Microsoft, and Amazon to hold a “significant unilateral market power” and obtaining financial income that exceeds the cost of capital costs over the last period.

Technology giants such as Amazon, Microsoft and Google have created a huge business, offering access to computing resources – such as storage and processing – online using data centers, large facilities that contain specialized equipment.

CMA is concerned that certain practices in space such as the weekend fees and adverse licensing conditions create the “castle” effect when enterprises are trapped in the agreements from which it is difficult to get out.

Microsoft and Amazon were not immediately available for comments when referred to CNBC.

The observer has assumed problems with the technical and commercial restrictions on the cloud market, which impede the firms to switch the cloud supplier and find better offers or more innovative new services from alternative providers.

It is also focused on Microsoft licensing, which make it cheaper to use a Windows Giant cloud server on its Azure cloud than competing services, saying that the problem “further limits the already limited choice and attractive products and suppliers.”

Microsoft and Amazon have approximately 30% to 40% of the so -called infrastructure market as services (IAAS), which entails processing, storage, network and other unprocessed computing resources, CMA notes. Google is the third largest supplier, but has a much smaller 5% to 10% of the IAAS market, the report said.

To solve problems, CMA recommended further investigation by Microsoft and Amazon in accordance with digital markets, competition and consumers (DMCC) to determine if they have a “strategic market”.

DMCC is recently introduced a law in the UK, which is aimed at preventing anti-component behavior in digital markets for digital markets in the European Union. Firms appointed by the strategic market participants are considered significant and fixed with market capacity and may be subjected to purposeful activities to solve competition problems.

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