The majority of cloud providers support regulatory intervention in the UK industry, according to research conducted by industry advocacy group the Open Cloud Coalition.
The research comes as the Competition and Markets Authority (CMA) prepares to decide whether to designate Microsoft and AWS with strategic market status, which would allow for targeted pro-competition intervention.
The Open Cloud Coalition’s survey found that just over 70% of cloud providers said regulatory intervention is urgent or extremely urgent, while nearly 75% believe dominant providers are likely to further entrench their position without swift regulatory action.
Meanwhile, as many as 82% reported experiencing barriers when competing with dominant players, including restrictive software licensing, bundling, interoperability limitations, and committed-spend discounts.
“This survey makes clear what many of us have long suspected: the cloud market urgently needs regulatory intervention,” said Lord Clement-Jones, Lib Dem Lords spokesperson for science, innovation and technology.
“The CMA must proceed decisively with its SMS investigation. Delay will only deepen market concentration and harm British sovereign cloud businesses. The time for action is now.”
The concerns of the industry have also been echoed by customers, with almost two-thirds saying swift regulatory action to improve competition is very important.
“Dominant hyperscalers are using a playbook of restrictive licensing and predatory credits to pull up the ladder on competition,” said Civo chief executive Mark Boost.
“The CMA must move decisively with SMS designation; any delay only gives these giants more time to entrench their position at the expense of UK innovation.”
Mike Hoy, chief technology officer at Pulsant, added: “As a founder member of the OCC and a British digital infrastructure and data centre leader, we firmly support action that strengthens choice in the cloud market.
“An open, fair and competitive market gives businesses the power to choose what works best for them, boosting innovation.”