Brit watchdog pushes to rein in Microsoft and AWS with 'strategic market status'

The UK CMA, following a 21‑month investigation, concludes that the UK IaaS market is highly concentrated, with Microsoft and AWS holding significant market power and implementing practices—such as technical/commercial switching barriers and Microsoft’s licensing—that hinder competition and may inflate prices. It proposes designating both providers with Strategic Market Status to enable targeted remedies, with options to be considered by the CMA Board in early 2026. Google supports swift action focused on restrictive licensing, while Microsoft and AWS dispute the findings as overlooking strong market competition; a fuller report is expected later.