Britain’s digital watchdog Ofcom is set to launch an inquiry into the state of the cloud computing market in the nation.
The study, prepared under the Enterprise Act 2002, will examine the position of the largest companies such as Amazon Web Services (AWS), Microsoft and Google amid concerns about their prominence.
This small number of hyperscalers thoroughly dominates the UK cloud market, with these three together generating around 81% of public cloud infrastructure services revenue in the UK, according to a study by Synergy Research Group.
What will the investigation seek to find?
Ofcom’s study will formally assess how well this market is performing and examine the strength of competition in cloud services.
The regulator will also consider any market characteristics that could limit innovation and growth in the industry by making it difficult for other companies to enter the market and increase their share.
As “the cloud sector is still evolving”, Ofcom will examine how the market works today and how it will develop in the future, “with the aim of identifying potential competition concerns at an early stage in order to prevent them from becoming embedded.” will as the market matures”. .
Ofcom will seek initial views on the UK cloud market from interested or affected parties.
What will the investigation reveal?
When Ofcom determines that a market is not performing well and there is a negative impact on businesses and ultimately consumers through higher prices, lower quality of service or reduced innovation, it may make recommendations to the government to change regulations or policies or to take competition or consumer enforcement action .
In addition, it may issue a market investigation reference to the Competition and Markets Authority (CMA) or “accept commitments” in lieu of a market investigation reference.
Ofcom’s final report on the matter is due to be published in 12 months.
But not only the cloud market is facing a regulatory review.
Over the next year Ofcom will also embark on a broader work program to examine other digital markets, including personal online communication apps and audiovisual content access devices.
This may include examining how services like WhatsApp, FaceTime and Zoom are affecting the role of traditional calling and messaging and how competition and innovation will evolve in these markets in the years to come
https://www.techradar.com/news/uk-cloud-market-set-to-face-major-investigation UK cloud market set to face major investigation