Communications industry regulator Ofcom has referred both Microsoft Corporation (NASDAQ:MSFT) and Amazon.com Inc (NASDAQ:AMZN) to the UK's Competition and Markets Authority (CMA) for investigation amid worries over the pair's dominant position in cloud computing.
Confirming the probe, the CMA said its independent inquiry group will assess the impact the two tech titans have on the £7.5 billion-a-year industry.
It follows an Ofcom study that highlighted issues that hinder customers from switching or using multiple cloud providers, including egress fees, discounts and technical barriers. The report also raised concerns about the software licensing practices of some providers, notably Microsoft.
"Strong competition ensures a level playing field so that market power doesn’t end up in the hands of a few players – unlocking the full potential of these rapidly evolving digital markets so that people, businesses and the UK economy can get the maximum benefits," said Sarah Cardell, the CMA's chief executive.
"The CMA’s independent inquiry group will now carry out an investigation to determine whether competition in this market is working well and if not, what action should be taken to address any issues it finds."