Google, Microsoft, and AWS trade blame as UK watchdog investigates cloud competition
Market leaders believe regulatory action is not necessary
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Amazon,MicrosoftandGoogleare all defending their business practices, which are under investigation by the UK’s Competition and Markets Authority (CMA), by subtly point the finger at one another.
By blaming each other, the three companies are hoping to deflect attention and avoid further investigations and punitory action from the CMA.
Key to the investigation are factors like licensing practices and egress fees, which have led to widespread criticism from customers finding it technically complex and expensive to change provider.
Industry leaders are blaming one another
Google has positioned itself as the underdog in the Britishcloudmarket, citing a much smaller market share of around 5-10% compared with AWS and Microsoft’s combined 60-70%. The Alphabet business claims that Microsoft’s software licensing practices have limited customer choice – customers can reuse licenses on Microsoft’s ownAzurecloud, but they need additional licenses when using rival clouds like Google’s.
Meanwhile, Microsoft has dismissed the CMA’s concerns, arguing that the cloud market continues to be “highly dynamic and rapidly evolving.” Interestingly, the company has also spoken out about retaining egress fees, stating that they’re not a significant issue for most companies.
The three cloud providers each introduced egress fee exemptions and discounts to comply with European mandates some months ago.
AWS has mirrored Google’s criticisms of Microsoft’s licensing practices, however the company insists that the cloud market remains healthy and competitive. Amazon also noted that eliminating egress fees could disrupt future investments.
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Despite pointing out what rival companies are doing wrong, neither of the three are keen for significant regulatory action within the UK cloud market, however jointly accounting for around two-thirds of the sector, little room is left for competition from other companies.
Over the coming months, the CMA is set to make a provisional decision before giving a final decision before the April 2025 deadline.
ViaTheRegister
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