The UK’s competition regulator, the CMA, has postponed its report deadline to further investigate the cloud market.
- Originally due on 4 April 2025, the report is now expected on 4 August 2025.
- The investigation focuses on allegations of competitive harm, particularly concerning Microsoft’s practices.
- Google and Amazon have expressed concerns over Microsoft’s influence on the market.
- The CMA’s extended timeline reflects the complexity and depth of the issues being examined.
The Competition and Markets Authority (CMA) has rescheduled the release of its comprehensive report on the state of the UK’s cloud market. Initially slated for publication on 4 April 2025, the new deadline is now 4 August 2025. This extension underscores the CMA’s commitment to thoroughly investigating potential competitive harms within the cloud sector.
The delay is attributed to the need for a more detailed examination of existing market dynamics and competitive practices. Specifically, the CMA highlighted the importance of analysing ‘licensing practices theory of harm,’ which was previously not scrutinised in Ofcom’s market study. The inquiry group is keen to consider all submissions, evidence, and analyses received beyond the original deadline, indicating the investigations’ intricate nature.
Central to the discussions are concerns about Microsoft’s licensing practices. Google has publicly criticised Microsoft, accusing it of ‘significantly impeding customer choice’ by employing restrictive software licensing strategies. These practices, Google contends, ‘risk irreversibly tilting the market in Microsoft’s favour’ at a critical juncture, necessitating ‘urgent and timely action.’
Amazon’s AWS echoed Google’s sentiments, pointing to a history of dissatisfaction among cloud providers and customers with Microsoft’s conduct. AWS emphasised that Microsoft’s ‘artificially imposed’ practices could be ‘easily fixed,’ suggesting a need for regulatory intervention to ensure fair competition.
In contrast, Microsoft defends its position, arguing that the CMA’s emerging views fail to consider the ‘highly dynamic and rapidly evolving’ nature of the market. These contentions highlight the ongoing complexity and contentious views surrounding interoperability and competitive dynamics within the UK cloud industry.
The CMA’s decision to extend the timeline highlights the significant role played by major cloud service providers like Amazon, Google, and Microsoft, who collectively dominate the market. Previous concerns raised by the CMA included the potential for these dominant players to discourage the use of smaller providers. Ofcom has also voiced apprehensions regarding high exit fees and barriers to switching providers, which are seen as tactics to entrench existing customers.
The CMA’s extended inquiry reflects the intricate and competitive challenges in the UK cloud market, emphasising the need for careful regulatory scrutiny.
