There are also plans to investigate digital markets including personal messaging and virtual assistants in 2023.
The UK media regulator Ofcom has launched an investigation into the positions of companies providing public cloud infrastructure. According to reports, the likes of Amazon.com Inc (NASDAQ: AMZN), Microsoft Corporation (NASDAQ: MSFT), and Alphabet Inc (NASDAQ: GOOGL) are currently on the authority’s radar. One aspect of the investigation would focus on whether these firms pose danger to competition. For now, hyperscalers that allow firms to get access to computing power and data storage from remote servers like Amazon Web Services, Microsoft Azure, and Google Cloud are facing a probe.
“The way we live, work, play, and do business has been transformed by digital services. But as the number of platforms, devices, and networks that serve up content continues to grow, so do the technological and economic issues confronting regulators,” Selina Chadha, Ofcom’s director of connectivity.
The report discloses that the investigation will not be fruitless as authorities will take further action when companies are found guilty of harming competition. According to Chadha, no conclusion has yet been made. In her statement, authorities would publish the final report after the investigation within 12 months. This will include concerns and proposed recommendations. It is said that the review would form a part of the broader strategy push by the media watchdog ensuring that the broadcasting and telecommunication industry within the region operates in sanity.
It is also important to note that there are plans to investigate digital markets including personal messaging and virtual assistants in 2023. The investigation would focus on how these prominent platforms have impacted traditional calling and messaging. It would also focus on the competitive landscape among digital assistants, connected TVs, and smart speakers.
In 2021, Amazon Web Services made about $62.2 billion in revenue and $18.5 billion in operating income. Amazon, Microsoft, and Google make a combined 81% of revenues generated in the cloud infrastructure services market in the UK as claimed by Ofcom.
“That’s why we’re kick-starting a program of work to scrutinize these digital markets, identify any competition concerns, and make sure they’re working well for people and businesses who rely on them,” said Chadha.
In the past couple of years, The Competition and Markets Authority have launched several investigations into big tech companies to ensure that there is a level playing field in the digital market.
next