In October 2023, the UK’s Competition and Markets Authority (CMA) shocked the tech world by launching an investigation into possible anti-competitive practices in the UK cloud infrastructure services market. This move is part of a larger trend, with regulators from Spain to South Africa and even the U.S. looking into various facets of cloud computing and how it affects competition.
For too long, regulators have ignored how the cloud market in the West has coalesced around just two major players. These tech giants have driven the digital revolution, but their control often feels like a given—even when it might stem from questionable practices. Accepting this status quo is a mistake. There are alternatives out there, with challenger cloud providers ready to compete as long as they have a fair shot.
To make the CMA’s investigation effective, it’s crucial that the conversation is not dominated by the major players. Decision-makers must listen to the challengers as well. By early next year, we’ll see the CMA’s preliminary findings regarding four “theories of harm,” touching on issues like exploitative pricing and obstacles that make it hard for customers to switch providers.
This summer, the CMA proposed several remedies to address these concerns. While we can’t predict the exact outcomes, one thing stands out: challenger cloud providers bring valuable insights from their years of experience. They can inject reality into often dry discussions.
The industry’s sometimes-jargon-heavy language—like “data egress fees” and “anti-competitive licensing practices”—has real implications. Just ask a challenger provider, and they’ll tell you how dominant players impose exorbitant charges when customers try to leave or hike up software costs when used on rival clouds. These practices deeply affect competition.
If the CMA can create a framework for true competition, the benefits will flow throughout the market. Agile and innovative challenger providers will lower prices, broaden consumer choices, and drive technological progress. They’ll also tackle urgent issues like cloud concentration risk and digital resilience, which only grow more critical as we rely on cloud services more and more.
This is a pivotal moment. It’s not just about today’s competitors and consumers; it’s about securing the cloud ecosystem for the future. Areas like AI and quantum computing, which depend heavily on cloud infrastructure, should not fall into a “winner takes all” trap. Such a scenario would choke off innovation and centralize power, risking global digital resilience and national security.
The CMA has an essential chance here, alongside global regulators, to change the game. This could be the start of a new era of openness and fairness in the cloud market. Challenger providers are keenly observing how the CMA’s decisions will translate into meaningful changes that benefit not just the industry, but consumers, the economy, and the future of digital innovation.
The last year might have sparked the investigation into the cloud market, but the coming year could be where we start to see real change unfold.