UK competition authority finds potential barriers in cloud services market

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Matthew Schruers President & CEO at Computer & Communications Industry Association | Official website

UK competition authority finds potential barriers in cloud services market

Competition regulators in the United Kingdom have released provisional findings from their investigation into cloud services. The Competition and Markets Authority (CMA) claims that competition within the sector is not operating optimally. It highlighted concerns regarding Microsoft's influence, suggesting that its dominance in productivity software may hinder customers' ability to select alternative cloud service providers.

Matthew Sinclair, Senior Director and head of CCIA’s London office, responded to these findings. He stated, "Unfair licensing terms for legacy software, such as office suites, are costing UK users a fortune." Sinclair urged the CMA to act swiftly on its findings to remove obstacles limiting user choice among certain cloud providers.

Despite these issues, Sinclair noted positive developments within the broader IT services industry in the UK. He remarked that there is "healthy competition" with new opportunities emerging for business growth, AI innovation, and investment. However, he cautioned against hasty or overly extensive interventions by the CMA in the broader cloud sector.