UK regulators target Microsoft, AWS over cloud market power—reform could begin in 2026

Britain’s competition regulator plans to assign “Strategic Market Status” to Microsoft and AWS, accusing them of driving up UK cloud costs through restrictive licensing and limited competition. The CMA estimates British firms overpay by £500M annually. While officials won’t act until 2026, Microsoft’s software rules face mounting pressure. The regulator signals that dominant players must adjust their practices—or risk tighter oversight.