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  • Philip Osadebay - Tech Journalist

Microsoft and AWS are being investigated by the CMA over competition concerns

Microsoft and Amazon Web Services (AWS) are two of the largest cloud computing providers in the world. They have been accused of anti-competitive practices by the Competition and Markets Authority (CMA), which is investigating their business practices to determine whether they are harming competition in the market.

The CMA is concerned that Microsoft and AWS are using their market power to make it difficult for smaller companies to compete. It has received complaints from several smaller cloud computing providers, who claim that Microsoft and AWS are using unfair practices to dominate the market.

One of the main concerns of the CMA is the way in which Microsoft and AWS bundle their cloud computing services with other products. For example, Microsoft's cloud computing platform, Azure, is closely integrated with its Office 365 suite of productivity tools. AWS, on the other hand, offers a range of services that are tightly integrated with Amazon's e-commerce platform.

The CMA is concerned that these practices may be preventing smaller competitors from offering their own integrated services, which could limit consumer choice and harm innovation in the market. The CMA is also investigating whether Microsoft and AWS are using their market power to force customers to use their services exclusively which could further harm competition in the market.

The investigation by the CMA is part of a wider trend of increased scrutiny of technology giants by regulators around the world. In recent years, companies such as Facebook, Google and Apple have faced similar investigations and fines over anti-competitive practices.

Microsoft and AWS have both said that they will cooperate fully with the CMA investigation. In a statement, Microsoft said that it was "committed to ensuring that our customers have access to the best possible cloud computing solutions" and that it would work with the CMA to address any concerns.

AWS also issued a statement saying that it believed that its practices were "consistent with the best interests of our customers and partners" and that it would "fully cooperate" with the investigation.

It is not yet clear what the outcome of the investigation will be. If the CMA finds that Microsoft and AWS have engaged in anti-competitive practices, it could impose fines and force the companies to change their business practices. However, it is also possible that the investigation could find that the companies have not done anything wrong.

Regardless of the outcome, the investigation by the CMA is a reminder of the increasing scrutiny that large technology companies are facing around the world. As more and more aspects of our lives move online, it is important that regulators ensure that competition in the digital marketplace is protected and that consumers have a choice of high-quality, affordable products and services.


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