According to the Competition and Markets Authority (CMA), Microsoft’s licensing practices are negatively impacting the competitiveness of AWS and Google in the cloud services market. This has led to vendor lock-in and limited options for customers.
The CMA highlighted the adverse effects on competition (AECs) caused by Microsoft’s market power and licensing practices, which make it difficult for new rivals to enter the market. This, combined with Microsoft’s dominant market share, further limits choice for customers.
AI Monopoly
In addition, the CMA raised concerns about the first mover advantage enjoyed by Microsoft in the development of cloud services. By leveraging its dominance in operating systems and office applications, Microsoft has established a strong presence in the cloud market, particularly with its Azure platform.
While the internet could have posed a threat to Microsoft’s monopoly, the company strategically transitioned its Active Directory platform to the cloud with Azure/Entra ID, solidifying its position in the market.
