Cloud, here’s how the UK will scan Amazon, Microsoft and Google
Ofcom, the independent authority for communications companies in the UK, will investigate the dominance of Amazon, Microsoft and Google in the country's cloud services market
The UK will investigate possible obstacles to competition in cloud services, a market dominated by Amazon, Microsoft and Google.
Ofcom, the independent authority for British communications companies, has launched an investigation into the cloud market. In particular, it will examine whether Amazon, Microsoft and Google are limiting innovation by making it difficult for other companies to provide their services.
Together, these hyperscalers control more than four-fifths of the UK cloud computing market, roughly half of which is Amazon, the Guardian said .
The communications regulator also said Thursday that it will look into other digital markets in the coming year, including messaging services like WhatsApp, FaceTime and Zoom, but also smart devices and speakers.
In recent times, the European authorities have intensified their control of the impact of Big Tech on national markets. On July 18, the EU Council definitively approved the Digital Markets Act (Dma), the new rules to combat unfair practices and the abuse of dominant position of Big Tech on digital markets. In fact, the rules target so-called gatekeeper companies with the power to control distribution in their markets.
All the details.
UK AUTHORITY INVESTIGATION ON AWS, MICROSOFT AND GOOGLE IN THE CLOUD MARKET
"We will look at the strength of competition in cloud services in general and the position of these three 'hyperscalers' in the UK market," the authority said.
Cloud services from Amazon (AWS), Microsoft Azure and Google account for 81% of the revenues of the UK cloud market (from 15 billion pounds, Ofcom said. According to the authority, the three big tech companies have also increased their share from 70% in 2018.
“We will also evaluate the characteristics of the market that limit innovation and growth in this sector, making it difficult for other companies to enter the market and expand their share,” the Ofcom statement continues. The investigation will be conducted under the Enterprise Act 2002, which gives Ofcom the power to publish market studies and to examine business practices in digital communications markets.
Therefore, the investigation will last for up to 12 months.
THE POSSIBLE CONSEQUENCES
At the end of the investigation, in the event of damage to competition, Ofcom may recommend that the government change its rules; take anti-competitive actions or ask the Cma (the UK antitrust authority) to investigate further.
THE COMMENT OF THE EXPERTS
The investigation "could serve as a catalyst for a full-blown market investigation, which could have a significant impact on large tech companies." This is the comment Paul Stone, senior consultant of the international law firm Charles Russell Speechlys, collected by the Financial Times .
"Given that Ofcom appears to be concerned about market entry, the measures they could implement include limiting any exclusivity agreements used by hyperscalers or requiring interoperability with new players," he added.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/cloud-ecco-come-il-regno-unito-scandagliera-amazon-microsoft-e-google/ on Fri, 23 Sep 2022 09:54:49 +0000.