UK communications regulator to probe digital markets dominated by Amazon, Google
TU IS


UK digital regulator Ofcom plans to conduct a range of investigations into competition in digital markets, including internet messaging, smart devices and cloud computing, Bloomberg reported on Thursday.
The announcement comes amid a series of global tech regulation in recent times.

The communications regulator initially plans to look at whether the hyperscale cloud providers, including Alphabet's Google Cloud (NASDAQ:GOOG) (NASDAQ:GOOGL), Microsoft's (NASDAQ:MSFT) Azure and Amazon's (NASDAQ:AMZN) AWS, are limiting innovation and growth. These tech giants receive around 81% of the revenues in the UK public cloud infrastructure market, which according to the regulator is worth $16.85B.
Ofcom also plans to examine other digital markets over the next year, including messaging services such as Zoom (ZM), FaceTime and WhatsApp, as well as connected TVs and smart speakers.
It could recommendation policy changes, take enforcement action or ask the competition regulator to investigate if it finds the cloud market not working well.
A final report is expected within 12 months.