The UK’s competition regulator has unveiled plans to target anti-competitive behaviour in the cloud market after engaging with its largest players.
Since the introduction of the new digital markets competition regime, the Competition and Markets Authority (CMA) has been conducting investigations to determine the extent to which large firms control various industries.
It has acted already on, for example, the app store market, which it has determined is unfairly dominated by Apple and Google, which have been labelled by the regulator as having strategic market status (SMS).
In the cloud computing market, the CMA has been engaging with Microsoft and Amazon, the two largest companies in the sector, and has set out actions to encourage more interoperability and choice for businesses.
The CMA investigated the cloud market in 2025 and has claimed that since the close of its investigation, both firms have taken “material steps to lower egress fees and improve interoperability”, which it said will benefit UK businesses.
“We’re using the regime in a flexible, pragmatic way to deliver real impact, as quickly as possible, for UK customers,” said Sarah Cardell, chief executive of the CMA.
“Cloud remains central to our approach – we’ve seen real progress through our engagement with Microsoft and Amazon to drive meaningful improvements and we expect more action from them over the coming months.
The CMA is also now launching an SMS investigation into Microsoft, examining its role in the business software market.
If it determines Microsoft holds this status, a likely result given how widespread the use of its software is among businesses, the CMA will be able to impose a package of pro-competition reforms on the company.
“An SMS designation would enable us to tackle remaining concerns around Microsoft’s licensing practices in cloud and would also enable us to ensure a level playing field as AI is rapidly embedded into everyday business software tools,” said Cardell.
“Through this package of actions, we’re driving changes across cloud and business software to make sure these markets are competitive and resilient for UK businesses and the public sector.”
Read more: Cloud firms call for rapid competition regulation
