There is very likely to be an investigation into competition in the cloud market in the UK. Ofcom advocates it after it clashes with practices that make switching difficult.
Ofcom began a study of the cloud services market in the UK last year. Halfway through that process, the regulator says it advises getting the matter looked at more deeply by the national competition watchdog, the Competition and Markets Authority.
Ofcom’s market research finds that cloud players are using different practices that make it difficult for customers to switch to other services, or to use multiple cloud players.
Amazon, Microsoft and Google dominate
The position of the most important players is also discussed. Amazon and Microsoft together have 60 to 70 percent market share in the country. Google is 5-10%. Only 20-30 percent go to other players.
By 5 October, the final market survey should be completed, but halfway through, Ofcom is already suggesting a deeper investigation, especially as it is a fast-growing market, to make sure that services in the cloud market are adequate. Ofcom also says it will work closely with the competition authority for this investigation.
The outcome of such a study could potentially lead to new laws or obligations that should improve competition between cloud players. While those are mostly applicable in the UK, it could also affect how those cloud players operate in Europe, or it could be a basis for similar measures in Europe.
