The Competition and Markets Authority (CMA) convened a panel to investigate the cloud services market in the UK. The panel has now recommended that the CMA use its digital markets powers to prioritize an investigation into the largest cloud providers, Microsoft and Amazon Web Services, regarding their practices.

The panel’s final decision highlighted three main issues. First, the UK cloud market is dominated by AWS and Microsoft, creating high barriers for new entrants to enter or grow. This situation gives Microsoft and Amazon significant market power and leaves customers with limited choice.

Second, technical and commercial barriers make it difficult for customers to switch cloud providers. This “lock-in” prevents them from taking advantage of better offers or more innovative services, which in turn weakens competition.

Third, Microsoft’s software licensing strategies are specifically highlighted as anti-competitive. They are designed to disadvantage rivals like AWS and Google, further restricting choice for customers who rely on Microsoft software.