The dominance of technology titans Amazon, Microsoft and Google in cloud services is being probed by watchdog Ofcom as part of a wider investigation to ensure digital communications markets are working well in the UK. The regulator is set to launch a market study in the “coming weeks” that will examine the strength of competition in cloud services and any barriers to new entrants into the sector.
The three big providers – Amazon Web Services (AWS), Microsoft and Google – collectively make around 81% of revenues in the UK public cloud infrastructure services market, according to Ofcom. Ofcom is also set to launch a broader investigation over the year ahead into other digital markets that will cover services such as WhatApp, FaceTime and Zoom, as well as scrutiny into smart speakers and connected televisions.
Selina Chadha, Ofcom’s director of connectivity, said: “The way we live, work, play and do business has been transformed by digital services. But as the number of platforms, devices and networks that serve up content continues to grow, so do the technological and economic issues confronting regulators.
“That’s why we’re kick-starting a programme of work to scrutinise these digital markets, identify any competition concerns and make sure they’re working well for people and businesses who rely on them.”
