Amazon and Microsoft to be investigated for cloud computing rivalry.

Due to fears that Amazon and Microsoft are monopolising the UK's cloud computing sector, a competition investigation will be conducted.

According to media watchdog Ofcom, the two account for 70–80% of the UK market while the nearest competitor Google only accounts for 5–10%.

Ofcom had expressed concern in April that a lack of competition made it challenging for companies to switch suppliers.

It has requested an investigation into the matter from the UK's Competition and Markets Authority (CMA).

Both Microsoft and Amazon confirmed to the BBC that they will cooperate with the CMA during its probe. Ofcom's worries, according to Amazon, are "based on a fundamental misconception" of the industry.

In its broadest sense, cloud computing is the online storage of data that can be accessed from any location at any time.

Millions of users use it to store massive quantities of data, operate software remotely, stream music and movies, and play games. It has evolved into a crucial component of infrastructure for both organisations and individuals.

It is frequently said that it uses "other people's computers," which are large networks of potent computers kept in sizable data centres all around the world, many of which are owned by either Amazon or Microsoft.

Businesses all throughout the UK utilise the services, and Ofcom predicted that the market for cloud services in the UK may reach £7.5 billion in value in 2022.

The CMA stated that the probe will be finished by April 2025. If it believes there is a genuine threat to the market, the body has the authority to compel enterprises to modify their practises, restrict acquisitions, or even sell off portions of their operations.

(Sources: bbc.co.uk)