Alright, here’s the scoop: The UK’s Competition and Markets Authority (CMA) dropped a big verdict—Microsoft and Amazon Web Services (AWS) are dominating the cloud game to the point it’s squeezing out competition. Here’s why this matters—and what comes next.
1. Two Giants, One Cloud: Too Much Power
Turns out, Microsoft and AWS each control a whopping 30–40% of the UK’s cloud market—so together, that’s up to 80%! Meanwhile, Google trails behind with just 5–10%, and everyone else barely registers. Not exactly inspiring for a healthy competitive environment.
2. Why It’s Hard to Jump Ship
Swapping cloud providers isn’t easy. There are technical hurdles, high charges to move your data (yes—exit fees), and quirky licensing rules that lock you in. Making matters worse, Microsoft was singled out for setting software licensing terms that favor Azure and make it expensive—or even impractical—to run its products on rivals like AWS or Google.
3. What the CMA Wants to Do
The CMA recommends putting Microsoft and AWS under “Strategic Market Status” (SMS). That label, under the UK’s Digital Markets legislation, would allow the CMA to roll out targeted rules—like pricing requirements, clearer licensing, and better portability. But don’t expect that to start right away. Any formal probe won’t kick off until 2026, as the CMA is waiting to complete parallel investigations into Google and Apple first.
4. The Pushback—and a Fan
Microsoft fired back saying the CMA’s view “misses the mark,” pointing out how fast AI and the cloud have evolved, and that Google wasn’t even covered in the report.
Amazon joined in, calling the inquiry “unwarranted” and warning it might hurt innovation and make the UK a regulatory oddball.
On the flip side, Google applauded the findings as a “watershed moment,” urging the CMA to move fast to boost competition and ensure businesses get fair value.
Bottom Line
The CMA’s investigation sends a clear signal: Microsoft and AWS hold too much sway in the UK cloud scene. By pointing out costly lock-in tactics and recommending focused regulation, the watchdog is gearing up to reshape the market. Whether this leads to more innovation, cheaper services, and easier switching remains to be seen—but it’s a pivotal moment, for sure.
