Ofcom proposes deeper probe into UK cloud market

UK regulators are set to deepen their investigation into the cloud infrastructure market, with communications watchdog Ofcom saying it is “particularly concerned” about potentially competition-limiting practices of Amazon and Microsoft.

Ofcom has been examining the market since October and has provisionally identified practices that make it more difficult for customers to switch and use multiple cloud suppliers. It has proposed referring the market to the Competition and Markets Authority for further investigation.

“We are particularly concerned about the practices of Amazon and Microsoft because of their market position,” it said in a statement on Wednesday.

The two companies have a combined market share of 60-70 per cent.

Ofcom highlighted high fees for transferring data out and technical restrictions, adding that if left unchecked competition could deteriorate further.