CMA publishes updates on its cloud market investigation

This month the Competition and Markets Authority (CMA) published an updated Issues Statement outlining its emerging thinking on several “theories of harm” guiding its ongoing investigation into the supply of cloud infrastructure and platform services in the UK. This update follows an initial statement published by the CMA in 2023 and Ofcom’s final report on the issue.

The deadline to respond to the latest issues statement is 27 June 2024 and we encourage all interested techUK members to respond by emailing  [email protected]

Key issues

The CMA’s investigation is focused on the following high-level “theories of harm” that it aims to test:

  1. technical barriers make switching and multi-cloud harder and limit competition between cloud service providers.
  2. egress fees harm competition by creating barriers to switching and multi-cloud leading to cloud service providers entrenching their position.
  3. committed spend discounts raise barriers to entry and expansion for smaller cloud service providers by incentivising customers to concentrate their business with one provider.
  4. software licensing practices by cloud service providers restrict customer choice and prevent effective competition.

The CMA has been clear that it has not yet reached any provisional conclusions on these issues or decided if there is an adverse effect on competition (AEC) created by any of the theories of harm.

With this in mind we strongly encourage all techUK members with an interest in these issues or views on the matters outlined in the working papers below to contact the CMA directly.

The CMA has also published the following working papers outlining more detailed thinking in the following areas:

Next steps

The CMA will publish a report containing its provisional decision on whether it has found one or more AECs, and a provisional decision on remedies. The timetable indicates this will be in Sept/Oct 2024, followed by a final decision before the statutory deadline in April 2025.

techUK will continue to follow this investigation closely and look for opportunities to engage members in thought leadership development, particularly on issues like technical barriers to interoperability, portability, and multi-cloud. If you want to get involved in that work please contact [email protected]


Chris Hazell

Chris Hazell

Programme Manager - Cloud, Tech and Innovation, techUK

Sue Daley

Sue Daley

Director, Technology and Innovation

Laura Foster

Laura Foster

Head of Technology and Innovation, techUK


Related topics