Ofcom's interim UK cloud market report flags competition concerns …

Ofcom has accused public cloud giants Amazon and Microsoft of indulging in anti-competitive behaviours that may financially disadvantage UK consumers and business, and is consulting on whether to make a referral to the Competition and Markets Authority (CMA) to investigate further. The regulator has reached the midway point of its investigation into the UK cloud infrastructure market and confirmed, in an interim report on its findings so far, a proposal to refer the market over to the CMA after identifying concerning behaviours that Amazon and Microsoft “display some form of”. While Ofcom said its investigation had uncovered “some evidence of active competition” in the market, which provide customers with “product innovation” and “discount” benefits, it has also discovered that competition is being limited by features that make it difficult for customers to change providers or add additional ones to their roster of cloud partners.

“Our provisional view is that competition is being limited by market features that make it more difficult for customers to switch and use multiple suppliers (known as multicloud),” said Ofcom in its 222-page interim report. These features include egress fees, which are the charges customers pay to transfer their data out of a cloud; and interoperability restrictions, which often mean customers have to put “additional effort into reconfiguring their data and applications to work on different clouds”, said Ofcom. The final feature of concern is one Ofcom terms “committed spend discounts” that it claims incentivises customers to use a single hyperscaler for “all or most of their cloud needs” and can make it less attractive to use rival providers as new needs emerge.

“As a result, we are concerned that a significant number of customers, especially those with more complex requirements, may face material barriers to switching and multicloud. This could leave some customers ‘locked-in’ to one of the leading providers,” the report continued. “We are most concerned in relation to AWS and Microsoft, given their market position and the fact they display some form of all the above behaviours that limit competition.”

In addition to this, the report said Ofcom is concerned that if customers encounter difficulties when trying to move to new providers, this could stifle the ability of other competitors to Amazon and Microsoft to challenge their status as market leaders. As a result, Ofcom said it is now planning to consult on a proposal to refer the cloud infrastructure market to the CMA to carry out a thorough market investigation. “This would allow the CMA to further examine if there are interventions that could address the adverse impact of the barriers we have identified and improve how the market works for customers,” the report added.

Amazon Web Services (AWS) and Microsoft have both issued statements in response to the interim report findings, which separately outline their commitment to working with Ofcom as its investigation continues.    A spokesperson for AWS said: “The UK has a thriving and diverse IT industry with customers able to choose between a wide variety of IT providers. At AWS, we design our cloud services to give customers the freedom to build the solution that is right for them, with the technology of their choice.

This has driven increased competition across a range of sectors in the UK economy by broadening access to innovative, highly secure and scalable IT services.” Meanwhile, the Microsoft statement said it “remains committed to ensuring the UK cloud industry stays highly competitive, and to supporting the transformative potential of cloud technologies to help accelerate growth across the UK economy”. The Ofcom investigation into the UK cloud infrastructure market began in September 2022 and the organisation has committed to publishing a final report on its findings by October 2023.

In the meantime, cloud market stakeholders have until 17 May 2023 to feedback on Ofcom’s interim findings and its plan to refer the market for further investigation by the CMA.

Tags:

excel-clothing listed on couponmatrix.ukpurina listed on couponmatrix.ukroute-one listed on couponmatrix.uksubway listed on couponmatrix.ukthe-range listed on couponmatrix.ukthetrainline-com listed on couponmatrix.uk
excel-clothing listed on couponmatrix.ukExcel Clothing is a leading retailer of affordable designer clothes. They offer a wide variety of styles for men, women and children, making it easy to find the perfect outfit no matter the occasion. Our Excel Clothing discount codes give you the best deals on the latest arrivals, so you can stay stylish without breaking the bank. Whether you're looking for a new outfit for a special occasion or just want to update your everyday wardrobe, Excel Clothing has you covered. So check out our Excel Clothing discount codes and start saving today! At Groupon, we understand that saving money is important to our customers. That's why we work hard to find the best discount codes for Excel Clothing products. Whether you're looking for a percentage off your purchase or free shipping, we'll make sure you get the best deal possible. So be sure to check back often for the latest and greatest Excel Clothing discount codes. Excel Clothing's discount code offers are not to be missed! Customers can use Excel Clothing promo codes to get an additional percentage off their purchase. This makes Excel Clothing the perfect place to shop for discount designer clothes. With their already low prices, the Excel Clothing promo code makes it even easier to find great value for money on all of your favourite brands. So why not take advantage of their deals and start saving today?
purina listed on couponmatrix.ukIf you count cats and dogs amongst your favourite pals on the planet then you’ll love Purina. A parent brand for top-notch pet food suppliers such as Felix, PRO PLAN and Gourmet, that you can give your pet pal dozens of delicious meals for less with a Purina discount code handy. Don’t worry if your pet has any particular special needs or dietary requirements, Purina will have a food option that keeps your best bud purring or wagging away.
route-one listed on couponmatrix.ukGreat savings can be made on a huge range of products from Route One using a discount code from Groupon. Well known by skateboarders and likeminded action sports fans, Route One has been pedalling the latest-and-greatest skate and snow equipment, accessories and clothing for the better part of three decades.
subway listed on couponmatrix.ukWhen hunger comes a calling, there’s no better than a cure than a big tasty sandwich from Subway. With more than 50 years since it first set up shop, Subway has earned itself a reputation as one of the world’s favourite fast food restaurants, so pick up one of our Subway vouchers and tuck into your Sub for less. Whether you prefer a meatball marinara or an Italian B.M.T., Subway has something for everyone.
the-range listed on couponmatrix.ukIf you’re in the market for something to spruce your home up then get involved at The Range. Stocking over 65000 products across 16 departments, The Range is committed to bringing their customers great quality products at the most competitive prices. With such a choice of products, regardless of the style you love, you’ll find everything to kit out your home exactly as you want it, and with a The Range discount code you’ll save money on their already incredible prices.
thetrainline-com listed on couponmatrix.ukLooking to provide easy access to cheap train tickets to customers across the UK, trainline was formed as a way to provide customers a way around growing train fares throughout the country. This accessibility also extends across the channel to Europeans routes spanning from the cobbled streets of Rome to the scorching sands of Madrid. With a trainline discount code you can bag a bargain on the busiest routes and ensure both you and your wallet are satisfied with your travel plans.