UK deepens probe into cloud computing dominance by US tech

UK regulators on Thursday said they would open a deeper investigation into concerns that Amazon and Microsoft dominated the country's cloud-computing services industry worth billions of dollars.

The Competition and Markets Authority will carry out its probe after a first look at the matter by the UK's communications regulator.

"We welcome Ofcom's referral of public cloud infrastructure services to us for in-depth scrutiny," CMA chief executive Sarah Cardell said in a statement.

She noted that the industry in the UK was worth £7.5 billion ($9.1 billion), underpinning online services from social media to artificial intelligence.

"Many businesses now completely rely on cloud services, making effective competition in this market essential," Cardell added.

Following a year-long investigation, Ofcom said it had "identified features that make it more difficult for UK businesses to switch and use multiple cloud suppliers.

"We are particularly concerned about the position of the market leaders Amazon and Microsoft," it added in a separate statement.

Thursday's announcement comes after the CMA last month dropped its objections to Microsoft's attempt to buy video game firm Activision Blizzard, the maker of "Call of Duty", paving the way for the US tech titan to close one of the biggest technology acquisitions.

The CMA had blocked the deal in April over fears it would damage competition in the fast-growing cloud gaming sector, where games are bought virtually and players can use a variety of devices rather than just consoles.