A cutting-edge rift is emerging in the UK cloud market as Amazon Web Services (AWS), Microsoft, and Google clash under the watchful eye of the UK’s Competition and Markets Authority (CMA). The regulator’s ongoing probe into cloud competition has set off a cycle of high-stakes hearings, revealing the fault lines between the industry’s leading players.

AWS, in its most pointed remarks yet, argued that half of Microsoft’s enterprise workloads would likely migrate elsewhere—if not for restrictive licensing costs. The company claimed that Microsoft’s pricing structure effectively traps customers in Azure, making it financially unviable to run Microsoft software on competing platforms. AWS called for immediate reforms, warning against delays tied to a possible “strategic market status” (SMS) designation, which would impose stricter oversight on dominant providers.

Meanwhile, Microsoft pushed back. It denied that its licensing practices distort competition and warned that heavy-handed regulation could stall a market still in flux. Microsoft emphasized Google’s dominance in infrastructure and AI, calling upon the CMA to reconsider Google’s exclusion from SMS consideration.

Google also supported the CMA’s report. It reinforced AWS’s reservations over Microsoft’s software limits and stressed that Microsoft’s growing data center presence indicates long-term dominance unless action is taken. Google supported targeted remedies, including limiting egress fees for AWS and Microsoft to level the playing field.

Beyond the licensing battle, the hearings revealed a deeper tension: hyperscalers are positioning themselves for a future shaped by AI, and each wants to define the rules. The CMA’s next moves will determine whether the UK’s cloud landscape remains competitive—or continues down a path increasingly shaped by just a few powerful players.