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AWS, Microsoft can do more to address cloud services barriers, UK competition watchdog says - Finance news and analysis from Global Banking & Finance Review
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AWS, Microsoft can do more to address cloud services barriers, UK competition watchdog says

Published by Global Banking & Finance Review

Posted on October 16, 2026

1 min read

· Last updated: October 16, 2026

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AWS, Microsoft Pressed by UK Watchdog to Address Cloud Switching Barriers

UK Competition Watchdog Scrutinizes Cloud Service Providers

Oct 16 (Reuters) - Britain's competition watchdog said on Friday that Amazon Web Services and Microsoft can do more to address remaining barriers to switching between cloud providers and using multiple cloud services to deliver greater customer choice in the UK.

Concerns Over Cloud Market Competition

Barriers to Switching and Multi-Cloud Usage

The Competition and Markets Authority said it would keep the possibility of launching a full strategic market status investigation into the sector under review.

Ongoing Regulatory Oversight

(Reporting by Yadarisa Shabong in Bengaluru and Paul Sandle in London; Editing by Tasim Zahid)

Key Takeaways

  • CMA found that AWS and Microsoft, each holding up to ~40 % of UK cloud spend, face scrutiny over data egress fees, interoperability issues and licensing practices that hinder switching and multi‑cloud adoption (assets.publishing.service.gov.uk).
  • In March 2026, AWS and Microsoft committed to reduce egress fees and improve interoperability for UK customers following CMA engagement; however, the regulator says further steps are still needed and will monitor progress (gov.uk).
  • The CMA continues to consider designating AWS and Microsoft with strategic market status—giving it powers to impose remedies—and could launch a full investigation under the DMCC Act if firms don’t address persistent barriers (gov.uk)

References

Frequently Asked Questions

What did the UK competition watchdog say about AWS and Microsoft?
The watchdog said AWS and Microsoft could do more to remove barriers for switching between cloud providers and using multiple cloud services.
Which companies are being addressed by the UK Competition and Markets Authority?
Amazon Web Services (AWS) and Microsoft are the main companies addressed.
What is the potential next step from the UK Competition and Markets Authority regarding cloud services?
The authority may launch a full strategic market status investigation into the sector.
Why is the UK watchdog concerned about cloud services?
They are concerned about barriers to switching between providers, potentially limiting customer choice.

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