Big tech groups face probe by UK regulator over cloud services

UK regulators have launched a probe into the cloud market to assess whether Amazon, Microsoft and Google are limiting innovation and growth by making it difficult for other companies to provide their services.

AWS, Microsoft Azure and Google, referred to as “hyperscalers” because of the size of the data centres used to process and store data, generate about 81 per cent of revenues in the UK cloud market, Ofcom said.

“We will examine the strength of competition in cloud services generally and the position the three hyperscalers hold in the market,” the communications regulator said in a statement on Thursday. “We will also consider any market features that might limit innovation and growth in this sector by making it difficult for other companies to enter the market and expand their share.”

The investigation, which will take up to 12 months, aims to “ensure that digital communications markets are working well for people and businesses in the UK”, Ofcom said.

The regulator will seek to start a broader probe into apps and devices for accessing audiovisual content, including WhatsApp, FaceTime and Zoom, to understand how these services are affecting traditional telecoms services such as calls and messages.