Big tech companies face UK probe over dominance of cloud services, messengers and smart speakers

Ofcom, the broadcasting and telecommunications regulator in the UK, is launching a probe to look at the cloud services tech giants offer in the coming weeks to ensure that there is competition. healthy paintings in space. Furthermore, the regulator has revealed that it will be testing messaging and video calling services, as well as smart and connected devices in the near future. For its cloud investigation, Ofcom’s market research will focus on the largest cloud providers in the region, namely Amazon Web Services (AWS), Microsoft and Google.

The three providers generate 81% of revenue in the UK’s £15 billion ($16.95) cloud infrastructure services market. Ofcom’s research will assess how well the market is doing with the tech giants dominating this space. It will also look at the strength of competitors and whether the market, in its current state, makes it difficult for other players to enter and expand their market share.

Ofcom explained that it is looking to eliminate any potential competition concerns in the first place to prevent them from becoming a major problem as the cloud services market matures. After all, the lack of healthy competition can stifle growth and innovation and can lead to low quality of service. If the regulator determines that the market is not performing well, it can recommend regulatory changes to the government, take enforcement action themselves, or refer the situation to the Competition and Markets Authority. CMA). It should be noted, the CMA has a separate and ongoing investigation into Google’s advertising technology methods.

The regulator will also launch probes to look at other digital markets over the next year. It will assess the impact of messaging and video calling services, such as WhatsApp, FaceTime and Zoom, on traditional calling and messaging methods. Ofcom aims to determine how competition in this area could evolve in the coming years, and whether the lack of cross-messaging and inter-service calling capabilities is cause for concern. are not.

The agency also intends to investigate competition in the smart speaker and TV space. It plans to analyze consumer behavior, as well as the bargaining power of major players with companies that provide content for the device.

Selina Chadha, Ofcom’s Head 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 serving content continues to increase, technology issues. and economic facing regulatory authorities.

That’s why we’ve started a program of work to scrutinize these digital marketplaces, identify any competitive concerns, and make sure they work well for the people and businesses rely on them. “

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