The UK’s Competition and Markets Authority has raised concerns over the market dominance of Amazon Web Services and Microsoft in the cloud services sector.

Together, they control around 80% of the UK market, with each holding about 40%.

The CMA’s investigation, launched in October 2023, aims to explore issues such as limited customer choice and difficulties in switching providers, which could hinder competition and innovation.

The UK cloud services market is valued at £9 billion (around US$11.2 billion).

Both AWS and Microsoft have contested the findings, warning that regulatory actions could stifle innovation.

The CMA is set to release its final decision by Aug. 4.