Big Tech: Major cloud providers in the firing line?
Jonathan Rush of Travers Smith LLP explains why cloud services are coming under increased scrutiny from the Competition and Markets Authority.
In January this year, the UK Competition and Markets Authority (CMA) published the provisional decision in its cloud services market investigation. It provisionally recommends that the cloud service activities of the two largest players, Amazon Web Services and Microsoft, should be investigated using the CMA’s new powers to regulate Big Tech under the UK’s Digital Markets, Competition and Consumers Act 2024 (DMCC Act).
The Act empowers the CMA to enforce consumer protection laws, including those related to unfair commercial practices, with the potential for fines of up to 10% of global turnover for breaches. This includes the ability to investigate and take action against businesses for unfair or misleading practices, which can have implications for how personal and other data is handled and used.
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