UK CMA Targets Cloud Giants Microsoft and Amazon Over Market Power

Here’s a summary of the situation based on the CNBC article and the latest regulatory actions:
Britain’s Competition and Markets Authority (CMA) has found that Microsoft and Amazon are hurting competition in the UK cloud computing industry. The CMA highlighted significant “market concentration” and barriers to entry, saying both firms have “unilateral market power” that lets them earn financial gains above the cost of capital for long stretches. The CMA raised concerns about:

• Egress fees (charges for moving data out of a provider’s cloud)
• Unfavorable licensing terms
• “Lock-in” effects that make it difficult for businesses to switch providers

The CMA is calling for a formal probe into Amazon and Microsoft’s dominance under proposed new UK tech rules. Both Microsoft and Amazon dispute the findings, with Microsoft pointing out that Google is a fast-growing rival not covered in the probe, and Amazon warning that stricter rules could hurt the UK’s global competitiveness. Google, however, praised the move, calling it a major moment for more fairness and competition.
Key issues at stake include price fairness, customer choice, and innovation in the UK cloud market. The outcome could set an important precedent for how tech giants are regulated in digital and cloud infrastructure, both in the UK and internationally.
For the official CMA statement and more industry reactions, please refer to the original CNBC article: Source: CNBC.
If you’d like more insight, community reactions, or technical discussion, just let me know!

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Source: CNBC https://www.cnbc.com/2025/07/31/uk-cma-cloud-ruling-microsoft-amazon.html