The investigation, launched under the Digital Markets, Competition and Consumers Act 2024 (DMCCA), seeks to address concerns about market competition and customer harm in the cloud computing sector.
In a statement issued today, AWS described the CMA’s proposed intervention as unwarranted, arguing that the IT services industry is already highly competitive and has delivered significant benefits to UK businesses.
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“The proposed intervention under the Digital Markets, Competition and Consumers Act 2024 (DMCCA) is not warranted,” said an AWS spokesperson.
“The evidence demonstrates the IT services industry is highly competitive. Cloud computing has lowered costs for UK businesses with on-demand services and pay-as-you-go pricing, expanded product choice, and increased competition and innovation.”
The CMA has been scrutinising the practices of dominant cloud providers, including AWS and Microsoft Azure, following concerns raised by smaller providers and customers over pricing structures, limited interoperability, and potential barriers to switching between providers.
While the CMA’s findings acknowledge some benefits of customer discounts, the regulator continues to examine other areas, such as the broader impact on competition and innovation.
AWS welcomed the CMA’s updated view that its discounting practices do not harm competition but cautioned against regulatory overreach in other aspects of the market.
“We urge the CMA to carefully consider how regulatory intervention in other areas will stifle innovation and ultimately harm customers in the UK,” the AWS spokesperson added.
The CMA’s investigation comes at a time when cloud services have become critical infrastructure for businesses of all sizes, supporting everything from data storage to artificial intelligence and digital transformation.
With AWS holding a significant share of the global and UK cloud markets, the CMA’s findings could have far-reaching implications for the sector.
AWS has continually maintained that the cloud services market’s competitive landscape fosters innovation and benefits end-users.
The company emphasised its commitment to collaborating with the CMA during the investigation’s final stages. “We will continue to work constructively with the CMA as they work on their final report,” the statement concluded.
The CMA’s final report is expected later this year, with potential regulatory recommendations under the DMCCA framework.
UPDATE
Microsoft has also since reacted to the CMA's initial findings:
Rima Alaily, corporate VP and deputy general counsel competition law group at Microsoft told Capacity: “The draft report should be focused on paving the way for the UK's AI-powered future, not fixating on legacy products launched in the last century. The cloud computing market has never been so dynamic and competitive, attracting billions in investments, new entrants, and rapid innovation. What could be better for UK businesses and government?”
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