REG - OFCOM - Ofcom: Cloud, messenger and smart-device markets

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22/09/2022 08:15

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RNS Number : 1969A  Office of Communications  22 September 2022

22 September 2022

 

Ofcom to probe cloud, messenger and smart-device markets

 

Ofcom is to examine the position of Amazon, Microsoft and Google in cloud
services, as part of a new programme of work to ensure that digital
communications markets are working well for people and businesses in the UK.

 

Cloud market study

 

In the coming weeks, Ofcom will launch a market study under the Enterprise Act
2002 into the UK's cloud sector. The largest providers of cloud services -
known as 'hyperscalers' - are Amazon Web Services (AWS), Microsoft and Google.
Collectively, these three firms generate around 81% of revenues in the UK
public cloud infrastructure services market.

 

Our study will formally assess how well this market is working. We will
examine the strength of competition in cloud services generally and the
position the three hyperscalers hold in the market. We will also consider any
market features that might limit innovation and growth in this sector by
making it difficult for other companies to enter the market and expand their
share.

 

When we launch the market study, we will invite initial views on the UK cloud
market from interested or affected parties. We plan to consult on our interim
findings and publish a final report - including any concerns or proposed
recommendations - within twelve months.

 

WhatsApp, Zoom and smart speakers

 

Over the next year, Ofcom will also start a broader programme of work to
examine other digital markets, including online personal communication apps
and devices for accessing audiovisual content.

 

We are interested in how services such as WhatsApp, FaceTime and Zoom are
affecting the role of traditional calling and messaging, and how competition
and innovation in these markets may evolve over the coming years. We also want
to understand whether any limitations on their ability to interact with each
other raises potential concerns.

 

Another future area of focus for Ofcom is the nature and intensity of
competition among digital personal assistants and audiovisual 'gateways' -
such as connected televisions and smart speakers - through which people access
traditional TV and radio, as well as online content.

 

A press release can be found on Ofcom's news centre:

https://www.ofcom.org.uk/news-centre/2022/ofcom-to-probe-cloud,-messenger-and-smart-device-markets

 

Further details can be found on the Ofcom website:

https://www.ofcom.org.uk/phones-telecoms-and-internet/information-for-industry/digital-markets

 

ENDS

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