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:
- technical barriers make switching and multi-cloud harder and limit competition between cloud service providers.
- egress fees harm competition by creating barriers to switching and multi-cloud leading to cloud service providers entrenching their position.
- committed spend discounts raise barriers to entry and expansion for smaller cloud service providers by incentivising customers to concentrate their business with one provider.
- 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:
- Technical barriers
- Licensing practices
- Potential remedies
- Competitive landscape
- Egress fees
- Committed spend agreements
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
Sue Daley
Sue Daley
Sue leads techUK's Technology and Innovation work.
This includes work programmes on cloud, data protection, data analytics, AI, digital ethics, Digital Identity and Internet of Things as well as emerging and transformative technologies and innovation policy. She has been recognised as one of the most influential people in UK tech by Computer Weekly's UKtech50 Longlist and in 2021 was inducted into the Computer Weekly Most Influential Women in UK Tech Hall of Fame. A key influencer in driving forward the data agenda in the UK Sue is co-chair of the UK government's National Data Strategy Forum. As well as being recognised in the UK's Big Data 100 and the Global Top 100 Data Visionaries for 2020 Sue has also been shortlisted for the Milton Keynes Women Leaders Awards and was a judge for the Loebner Prize in AI. In addition to being a regular industry speaker on issues including AI ethics, data protection and cyber security, Sue was recently a judge for the UK Tech 50 and is a regular judge of the annual UK Cloud Awards.
Prior to joining techUK in January 2015 Sue was responsible for Symantec's Government Relations in the UK and Ireland. She has spoken at events including the UK-China Internet Forum in Beijing, UN IGF and European RSA on issues ranging from data usage and privacy, cloud computing and online child safety. Before joining Symantec, Sue was senior policy advisor at the Confederation of British Industry (CBI). Sue has an BA degree on History and American Studies from Leeds University and a Masters Degree on International Relations and Diplomacy from the University of Birmingham. Sue is a keen sportswoman and in 2016 achieved a lifelong ambition to swim the English Channel.
- Email:
- [email protected]
- Phone:
- 020 7331 2055
- Twitter:
- @ChannelSwimSue,@ChannelSwimSue
Laura Foster
Laura Foster
Laura is techUK’s Head of Programme for Technology and Innovation.
She supports the application and expansion of emerging technologies, including Quantum Computing, High-Performance Computing, AR/VR/XR and Edge technologies, across the UK. As part of this, she works alongside techUK members and UK Government to champion long-term and sustainable innovation policy that will ensure the UK is a pioneer in science and technology
Before joining techUK, Laura worked internationally as a conference researcher and producer covering enterprise adoption of emerging technologies. This included being part of the strategic team at London Tech Week.
Laura has a degree in History (BA Hons) from Durham University, focussing on regional social history. Outside of work she loves reading, travelling and supporting rugby team St. Helens, where she is from.
- Email:
- [email protected]
- LinkedIn:
- www.linkedin.com/in/lauraalicefoster
