In a decisive update released today, the UK’s Competition and Markets Authority (CMA) reported that Microsoft and Amazon are stifling cloud competition in 2025. The watchdog highlights both companies’ dominant positions in the UK cloud infrastructure market, which together account for 70–80% of usage.
According to the CMA, Microsoft’s licensing practices and Amazon’s discount structures are creating significant barriers for smaller providers. These tactics, the report claims, limit consumer choice and suppress innovation in the growing UK cloud services sector.
The investigation, which began in 2023, found that switching between cloud providers remains difficult for businesses. Lock-in clauses, complex pricing models, and limited data portability are the key obstacles hurting smaller tech firms.
Limited Flexibility for Customers
The CMA states that customers who wish to move their data or switch providers face disproportionately high costs and operational hurdles. This leads to long-term dependency on the major players, reducing healthy competition.
“Fair competition in cloud computing is critical for innovation, cost reduction, and customer empowerment,” the CMA said in the statement. It has recommended new guidelines and potential regulatory measures to break the current dominance and open the market for newer players.
Market Response and Industry Pushback
Amazon Web Services (AWS) responded by asserting that their services are priced competitively and that customers have full freedom to choose. Microsoft also defended its licensing practices, stating they comply with current regulations and provide value to customers.
However, several smaller cloud vendors and UK-based startups have echoed the CMA’s concerns, claiming their entry into the market has been routinely stifled by policies favoring Big Tech incumbents.
Global Implications
The report’s findings may influence similar investigations across Europe, where regulators are closely watching the UK’s stance on digital monopolies. Other countries have raised alarms over dominant U.S. tech firms exerting influence on local digital infrastructure.
This growing concern comes at a time when reliance on cloud-based platforms is expanding rapidly, especially among financial institutions, healthcare providers, and public sector organizations.
What Happens Next?
The CMA plans to consult on its proposed remedies before finalising its decision in October 2025. Options include forcing structural changes in licensing, mandating greater transparency, and making it easier for customers to switch providers without penalties.
Closing Line:
To stay updated on how regulatory shifts are shaping the digital economy, follow Welp Magazine’s ongoing business coverage. For a broader geopolitical lens on Big Tech’s global impact, read this related post on DF Media.
