The UK cloud market is expected to face a massive investigation

The UK cloud market is expected to face a massive investigation ...

Ofcom, a UK digital watchdog, is set to conduct a research into the state of the cloud computing market in the United Kingdom.

In response to concerns over their excellent standing, a study conducted under the Enterprise Act 2002 will examine the position of the major corporations, such as Amazon Web Services (AWS), Microsoft, and Google.

According to a synergy research group, these small numbers of hyperscalers dominate the UK''s cloud market. These three organizations totally generate 81% of revenue in the UK public cloud infrastructure sector.

What will the investigation look to find?

Ofcom''s research will aim to formally assess how good this market is working, and how fierce competition in cloud services will be.

The regulator will also look into any market characteristics that might limit innovation and growth in the sector by making it difficult for other businesses to enter the market and increase their share.

Because "the cloud sector is still evolving," Ofcom will look at how the market is working today and how it anticipates it to develop in the future, "intentionally to identify any potential competition concerns early to prevent them becoming embedded as the market matures."

Ofcom is expected to solicit initial opinions from interested or affected parties on the UK cloud market.

What will the investigation lead to?

If Ofcom discovers that a market is failing, it can have disastrous impacts on businesses and ultimately consumers, because of higher prices, less service quality, or decreased innovation. It may make recommendations to the government to change regulations or policies or adopt competition or consumer enforcement actions.

In addition, it may make a market investigation reference to the Competition and Markets Authority (CMA) or "accept undertakings" instead of making a market investigation reference.

The final report on Ofcom''s subject will be published in just 12 months.

Despite the fact that it''s not only the cloud market that appears to be subject to regulatory scrutiny.

Over the next year, Ofcom will also begin a deeper program of work to investigate other digital markets, such as online personal communication apps and devices for recording audio.

This may include looking into how traditional calling and messaging are affected by WhatsApp, FaceTime, and Zoom, as well as how competition and innovation in these markets might be influenced over the next years.