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UK watchdog says AWS and Microsoft can do more on cloud switching barriers

The UK's Competition and Markets Authority says AWS and Microsoft can ease barriers to switching cloud providers, while a full SMS probe remains possible.

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what happened

The UK's Competition and Markets Authority said on Friday that Amazon Web Services and Microsoft could go further in removing lingering obstacles to moving between cloud providers and running workloads across several platforms. The regulator aims to widen customer choice in Britain.

The watchdog also said it will keep open the option of a full strategic market status investigation into the sector, which remains under review. According to its statement, the two companies agreed to work on identity and access management across clouds, and to make portable cloud architectures deployable and movable between providers without barriers.

why it matters

For investors in the cloud segment, the message is more pressure on the largest providers: easier switching could weaken customer lock-in and gradually shift spending toward rivals. For Amazon and Microsoft shares, the update looks like a soft signal without immediate financial consequences, but the open option of a full investigation keeps regulatory risk on the table.

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prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.

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