Microsoft and Amazon are hurting cloud competition, UK regulator finds

Core Viewpoint - The UK's competition regulator has identified that Microsoft and Amazon are negatively impacting competition in the cloud computing sector and has called for further investigation under new tech regulations [1][2]. Group 1: Market Dynamics - The Competition and Markets Authority (CMA) has noted that market concentration and entry barriers in the cloud services market have allowed Microsoft and Amazon to maintain "significant unilateral market power" [2]. - Both companies have been able to achieve financial gains that exceed their capital expenditure costs over a prolonged period [2]. Group 2: Industry Practices - Major tech companies, including Amazon, Microsoft, and Google, have established substantial businesses by providing internet-based access to computing resources, such as data storage and processing [3]. - The CMA is concerned about practices like egress fees and unfavorable licensing terms, which create a "lock-in" effect, making it challenging for businesses to exit contractual agreements [3].