There are concerns that Amazon and Microsoft are dominating the UK’s cloud computing market.

Combined, they make up 70-80% of the UK’s media sector, while Google has 5-10%.

In April, Ofcom said lack of competition made switching providers difficult for businesses.

A referral to the UK’s Competition and Markets Authority (CMA) has been made.

The term cloud computing refers to the storage of data online that can be accessed anywhere.

Ofcom estimates that the UK cloud services market will be worth up to £7.5bn in 2022.

According to CMA chief executive Sarah Cardell, many businesses now completely rely on cloud services.

Competitive markets ensure a level playing field, so that market power doesn’t end up in the hands of a few – unleashing the full potential of these rapidly evolving digital markets for people, businesses, and the UK economy.

CMA’s independent inquiry group will investigate competition in this market and determine what action should be taken if any issues are found.

CMA said it would conclude its investigation in April 2025.

Businesses and individuals are using cloud computing.

It’s how millions of people store data, use software remotely, stream music and videos, and play games.

Many of those machines belong to Amazon or Microsoft, and are stored in huge data centres across the world.

Microsoft’s Azure cloud platform makes some software much more expensive for one UK business.

It can force companies to change practices, block purchases or even sell off parts of their businesses if it believes there is a legitimate threat.