At the halfway point of its probe into UK cloud services, Ofcom is proposing to refer the market to the Competition and Markets Authority for further investigation.
Our market study has provisionally identified features and practices that make it more difficult for customers to switch and use multiple cloud suppliers. We are particularly concerned about the practices of Amazon and Microsoft because of their market position.
Cloud computing has become critical for many businesses across the economy – including telecoms companies, broadcasters and public sector organisations – and has transformed the way they deliver services on which we all rely every day. It uses data centres around the world to provide remote access to services such as software, storage and networking.
In October, we launched a study under the Enterprise Act 2002 into cloud infrastructure services in the UK, to assess how well this market is working. We have examined the strength of competition and any features that might limit innovation and growth in this sector by making it difficult for other cloud providers to enter the market or smaller companies to expand.
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