The head of an ongoing investigation into cloud market dominance has stepped down due to frustrations over slow regulatory action. Companies using cloud services are feeling the squeeze from the dominance of Microsoft Azure and Amazon Web Services. The delay in implementing recommendations from the UK’s Competition and Markets Authority (CMA) has raised concerns across the industry.

Inquiry Chair Resigns Over Lack of Progress

Kip Meek, who led the inquiry into cloud industry competition, announced his resignation earlier this week. He expressed disappointment with the pace at which the CMA is moving to address the issues identified in their report. Meek told a tech publication that he was worried about the slow implementation of their recommendations and felt the delay was harming market fairness.

While the CMA focuses on UK markets, its investigation has attracted international attention. Regulators in the US and Europe are closely watching, hoping for decisive action. Industry experts on both sides of the Atlantic have voiced concern that the lack of progress is allowing the dominant players to entrench their market positions further.

Industry and International Concerns Mount

David Terrar, CEO of the Tech Industry Forum, criticized the slow pace, saying that each month without action makes the big players even more dominant. He questioned why it takes nearly a year to decide on steps to curb anti-competitive behavior. Similarly, Nicky Stewart from the Open Cloud Coalition highlighted that the industry has been waiting since late 2022 for meaningful change, yet little has happened.

Stewart pointed out that Microsoft and AWS still control between 70% and 90% of the cloud market in the UK. She praised the CMA’s initial report for its thorough understanding of the industry but lamented the slow follow-through. Concerns about the market’s fairness are not limited to the UK. In the US, the Federal Trade Commission recently launched an investigation into Microsoft’s market position, questioning whether it has an unfair advantage.

Meanwhile, European regulators have also taken action. The European Commission opened three investigations into cloud services under the Digital Markets Act, examining whether current rules can effectively promote competition and prevent unfair practices. The ongoing delays in the UK have added to worries that regulators worldwide are not acting swiftly enough to curb hyperscaler dominance.

Overall, the resignation of Kip Meek highlights the urgency many industry leaders feel. Without faster action, the market risks becoming even less competitive, which could harm innovation and consumer choice in the cloud sector. The global regulatory landscape continues to evolve as authorities grapple with how best to regulate these powerful tech giants.

Inspired by

• https://www.computerworld.com/article/4141112/lack-of-regulatory-action-on-hyperscaler-dominance-prompts-inquiry-chair-to-quit-2.html

Sources

• networkworld.com
• themorningintelligence.uk
• cio.com
• europa.eu
• networkworld.com