Business

Microsoft Challenges UK Regulator's Cloud Market Analysis, Highlights AI's Role

Microsoft Disputes CMA's Cloud Market Findings

In a detailed 56-page response, Microsoft has contested the UK Competition and Markets Authority's (CMA) recent investigation into the £9 billion UK cloud computing market. The tech giant criticized the CMA for not adequately considering artificial intelligence's transformative impact on the industry.

Regulatory Concerns and Industry Impact

The CMA's provisional findings, released in January, suggested that Microsoft was using its dominant position in software to disadvantage competitors such as Amazon Web Services and Google. The regulator claimed to see "no significant direct impact" from AI on competition within the traditional cloud sector. Microsoft, however, argues this perspective is a "fundamental mistake," emphasizing AI's growing importance to corporate clients. The company also cautioned that regulatory intervention could have adverse effects, potentially discouraging growth and investment in the UK cloud market.