Ofcom to investigate tech giants’ dominance of cloud computing
Ofcom will investigate the world’s biggest tech companies to ensure their dominance in areas such as cloud computing, messaging and smart devices works for the people and businesses of Britain, the communications regulator has said.
The cloud services investigation, which will take priority out of the three issues, will look at Amazon, Microsoft and Google.
Between them, these “hyperscalers” control more than four-fifths of the UK’s cloud computing market, about half of which is made up by Amazon.
Over the coming year, the regulator will begin investigating a wider range of digital services. WhatsApp, FaceTime and Zoom will come under the lens, with Ofcom looking at how their market power is affecting traditional calling and messaging, and whether the lack of interoperability “raises potential concerns”.
Smart speakers such as Amazon’s Echo, Google’s Nest and Apple’s HomePods will be checked, alongside smart TVs and digital personal assistants, to ensure their effects on consumer behaviour do not distort the market for TV, radio and online content.
Selina Chadha, Ofcom’s director of connectivity, said: “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.
“That’s why we’re kickstarting a programme of work to scrutinise these digital markets, identify any competition concerns, and make sure they’re working well for people and businesses who rely on them.”
The cloud study, which begins in the coming weeks, “will examine the strength of competition in cloud services generally and the position the three hyperscalers hold in the market”, the
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