UK Cloud Firms Urge Swift Regulatory Action Amid CMA Probe into Microsoft and AWS

UK cloud providers have united in demanding urgent regulatory oversight following the Competition and Markets Authority’s (CMA) formal review of Microsoft and Amazon Web Services (AWS). The move comes amid growing concerns that the two tech giants’ entrenched market positions—where Microsoft holds 17% and AWS commands 24% of the UK cloud infrastructure market—undermine fair competition and limit innovation for smaller players. The CMA’s investigation, initiated in early 2026, focuses on whether Microsoft and AWS are leveraging their scale to impose anti-competitive pricing, restrict access to critical infrastructure, or unfairly favor their own services. This scrutiny follows a 2025 EU antitrust ruling against AWS for bundling services and denying fair access to third-party vendors—a precedent that UK regulators may now emulate. If the CMA finds violations, potential remedies could include mandatory data portability, forced licensing of core infrastructure components, or structural divestitures. These measures could significantly alter the cost structure for enterprises relying on AWS and Microsoft Azure, with forecasts suggesting a 10–15% increase in infrastructure pricing for mid-tier cloud users over the next 18 months. The outcome may also affect the valuations of major cloud-related equities: Microsoft (MSFT) and Amazon (AMZN) both carry market caps exceeding $2.5 trillion, while Meta (META) faces secondary exposure due to its growing cloud operations. Oil futures (CL=F) could also experience indirect volatility as data center energy demands rise in response to regulatory shifts in cloud deployment models.