The United Kingdom is looking for more regulatory power over the Microsoft and Amazon Web Services cloud computing services
The United Kingdom Competition and Markets (CMA) Markets announced its Preliminary findings that the cloud services market "It doesn’t work as well as it can be." This relatively vague statement follows a A 16-month investigation in The UK’s cloud services marketEspecially his two largest vendors, Amazon Web Services (AWS) and Microsoft. Both companies have between 30 and 40 percent market share, followed by Google at five to 10 percent.
Despite the unclear statement of the thesis, the CMA investigation has so far raised several critical points and recommendations. He found that there were alternative cloud suppliers facing significant barriers to enter and expand. Also, this "Technical and commercial barriers" Limit customer ability to switch suppliers such as data transfer fees. Specific to Microsoft, CMA said the company uses its large software presence to limit how effectively AWS and Google can compete when it comes to customers who want to use this software while in the cloud.
CMA reports that businesses and organizations in the UK have increased their 30 percent cloud services costs every year – reaching $ 9 billion ($ 11 million) in 2023. Considering these costs of £ 9 billion, CMA, CMA stated that the payment of only five percent more than prices in a "A well -functioning market," It would cumulatively cost another £ 430 million ($ 535 million) a year – more if growth continued.
"Given the amount of capital investment and scale savings needed to provide cloud infrastructure services, there may be a natural restriction on the number of suppliers that can compete effectively in these markets," CMA states in its release. "For this reason, it is a vital competition between even a small number of suppliers to work well for customers."
The study group indicates a new solution: Strategic market designation (SMS) for AWS and Microsoft cloud services. The label comes with the kind assistance of the new UK Digital Markets, Competition and Consumers Act (DMCC) and would allow the CMA to impose larger directives for regulating and projection of both services. "If AWS and Microsoft are defined as SMS, CMA will be able to consider the interventions we have considered in this request related to exit fees, technical barriers and licensing practices of Microsoft," The edition is further indicated.
Earlier this month, CMA opened investigations whether Google Search Practices And mobile ecosystems must receive an SMS designation. The regulator is also Drilling of Apple In the second case.
This article originally appeared on Engadget at https://www.engadget.com/big-tech/uk-seeks-greater-regulatory-power-over-orosoft- andhazon-web-services-loud -computing-ser 185757650 .html? Src = RSS
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