The UK Competition and Markets Authority is currently investigating the cloud services practices of major companies such as Amazon, Microsoft, and Google. The investigation focuses on issues such as data retrieval fees and software licensing policies, with many customers complaining that these factors make switching service providers complicated and expensive. In response, Amazon, Microsoft, and Google have been criticizing each other in an attempt to deflect scrutiny and minimize legal pressure. The companies are hoping to avoid strong penalties from regulators as a result of the investigation.
Google, with an estimated market share of 5-10% in the UK cloud services market, has positioned itself as an “underdog” and criticized Microsoft’s software licensing policy, claiming it limits customer choice. Meanwhile, Microsoft has dismissed the concerns raised by the CMA, emphasizing that the cloud market remains dynamic and rapidly evolving. Amazon Web Services (AWS) has also criticized Microsoft’s software licensing policy and warned about the impact of eliminating data retrieval fees on future investments.
The CMA is expected to make an interim decision in the next few months, with a conclusion expected in April 2025. This investigation could lead to significant regulatory changes for cloud service providers, with a focus on promoting competition and protecting consumers. As the investigation continues, data retrieval fees and software licensing policies remain controversial topics for cloud service providers as they seek to balance regulatory compliance with ensuring business profitability.
