AWS and Microsoft accused of limiting UK cloud market competition by the Competition and Markets Authority (CMA)

UK's Competition and Markets Authority (CMA) Raises Concerns over Cloud Services Market

The UK's Competition and Markets Authority (CMA) has highlighted concerns about the cloud services market, citing complex pricing models and high data egress fees as issues that make it costly and difficult for customers to switch providers.

The CMA's findings, which are particularly relevant to the UK's FinTech sector, suggest that these practices have effectively locked in many organizations, discouraging innovation and reducing market flexibility. The CMA's intervention may signal a turning point in cloud infrastructure governance.

Wasabi Technologies, a challenger cloud storage company, has welcomed the CMA's findings and called for swift action. The company, which offers flat-rate pricing and zero egress fees, believes this approach empowers customers with full control over their data and costs.

Kevin Dunn, Vice President and General Manager for EMEA at Wasabi, endorsed the CMA's stance and emphasised the need for immediate remedies to ease the pressure on UK businesses. According to internal research conducted by Wasabi, 51% of UK companies have exceeded their cloud budgets in the past year, largely due to hidden fees and a lack of pricing transparency.

For startups and growth-stage firms building solutions in areas like embedded finance, digital payments, and RegTech, fair access to cloud services can be a critical enabler. These firms often rely heavily on scalable and cost-efficient cloud infrastructure.

The CMA's concerns are not limited to Wasabi Technologies. The UK's Competition and Markets Authority has concluded that Microsoft Azure and Amazon Web Services (AWS) have significant unilateral market power in the UK cloud services market.

The CMA's findings have the potential to level the playing field in the UK cloud services market, providing a much-needed boost to competition and innovation. The implications for the UK's FinTech sector and startups could be significant, as they strive to build solutions that drive growth and contribute to the UK economy.

In conclusion, the CMA's findings highlight the need for transparency and fairness in the cloud services market. By addressing these concerns, the CMA aims to empower businesses, particularly those in the FinTech sector and startups, to make informed decisions about their cloud infrastructure, driving innovation and growth in the UK.

AWS and Microsoft accused of limiting UK cloud market competition by the Competition and Markets Authority (CMA)