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“This is a £7.5 billion market that underpins a whole host of online services - from social media to AI foundation models. Many businesses now completely rely on cloud services, making effective competition in this market essential,” she said. Technical barriers to switching involve the different APIs, protocols and workflows that customers must use for their application to work with each cloud, while discounts for committing to using a certain amount of resources may incentivise customers to use a single provider.
AWS said it disagrees with Ofcom’s findings, and it believes they are based on a “fundamental misconception” of how the IT sector functions. It warned that unwarranted intervention might actually lead to unintended harm to customers, but indicated it will “work constructively with the CMA.