The dark satanic rumour mill has manufactured a hell-on-earth yarn claiming that Ofcom is set to order the Competition and Markets Authority (CMA) to probe the UK’s cloud industry over anti-competitive practices.
One cloudy company has been tipped off that there will be a recommendation to the CMA to open an inquiry into the cloud market for competitive reasons.
The source further said the CMA’s investigation would likely encompass aspects such as egress fees, data portability and interoperability.
It may even extend to examining software licensing and its potential to influence the market dynamics.
Another industry insider said the investigation will focus on technical and non-technical barriers to interoperability, encompassing licensing agreement aspects.
“It would also focus on egress, which is a big debate, and might look into the topics of cloud credits in the context of AI.”
Following Ofcom’s recommendation, the CMA will have approximately two weeks to decide whether to initiate its investigation.
The investigation is anticipated to last up to 12 months, and any actions or solutions it leads to are expected to be implemented within six to 10 months.
“There will be a market investigation referral and we’re told it will be broad, so the inclusion of multiple things,” the person said.
Ofcom is saying nothing officially other than it will be n whether or not to refer the market to the CMA very soon
Ofcom launched a market study into the £15 billion UK cloud services market in September last year, to ensure that digital services benefit both local businesses and consumers.
The regulator also said it would evaluate any market features that could “impede innovation and hinder growth” in the cloud services sector.
At the halfway point of its market study, in April, Ofcom proposed forwarding the issue to the CMA for further investigation.
“Our market study has provisionally identified features and practices that make it more difficult for customers to switch and use multiple cloud suppliers. We are particularly concerned about the practices of Amazon and Microsoft because of their market position,” the regulator said.
Microsoft and Amazon collectively hold a market share of between 60 per cent and 70 per cent in the UK cloud market.
