British regulatory authority will examine the cloud business of Amazon
Software

British regulatory authority will examine the cloud business of Amazon, Microsoft and Google for compliance with antitrust law

The UK regulator of the telecommunications market, the Office of Communications (Ofcom), has announced the start of an audit of the cloud businesses of the American companies Amazon, Microsoft and Google for violations of the country’s antitrust laws. In particular, the regulator wants to find out whether the biggest players in the cloud computing market are creating barriers for competitors.

    Image Credit: Chesnot/Getty Images

Image Credit: Chesnot/Getty Images

Based on the findings of the review, Ofcom may take further action if Amazon Web Services, Microsoft Azure and Google Cloud are found to affect competition in the region. At this time, the regulator has yet to determine whether the IT giants are engaging in activities to suppress competition in the cloud computing segment. The agency is expected to complete the investigation and publish a report on its findings within 12 months. Official representatives from Amazon, Microsoft and Google have not yet commented on this topic.

The clear leader in the cloud infrastructure market is Amazon, whose Amazon Web Services unit generates billions of dollars in revenue annually. At the end of 2021, AWS had revenue of $62.2 billion and operating income of $18.5 billion. Microsoft Azure is the second largest player in the market and Google Cloud is the third largest. Other companies such as IBM or Alibaba also have their own cloud divisions. According to Ofcom, Amazon, Microsoft and Google generate about 81% of revenue from the US$16.8 billion UK cloud infrastructure market.

About the author

Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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