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Microsoft has accused the British antitrust regulatory authority to “look back” by ignoring how artificial intelligence redesigns the technology industry to react to the agency's examination to the 9 billion GBP UK Cloud Computing Market.
In January, the competition and market authority said that Microsoft “used its strong position within the software to make Amazon Web Services and Google difficult in its preliminary decision after an extended investigation into the sector so as to effectively competive”.
Despite enormous investments by large technology corporations within the establishment of the AI ​​infrastructure, the CMA stated that they currently don’t have any significant direct effects on the competition on the normal cloud market.
In a 56-page answer published on Friday, Microsoft described the position of the CMA on AI as a “basic mistake” since the technology for corporate customers had turn out to be.
“There is an actual danger that the interference in the marketplace that goes into these misunderstandings and Great Britain with the alternative of the CMA goal of a healthy, well-functioning market, wealthy in growth and investment, will leave,” said it.
Big Tech corporations invest a whole lot of billions of dollars to accumulate so-called accelerated computer systems which are capable of train and deliver large voice models equivalent to those that operate Google from Gemini and Openais Chatgpt.
Microsoft's criticism comes when the CMA has been intensively examined in recent months and has come under pressure from the federal government to prove that it promotes growth and never suppresses any innovations within the UK. Last month, the ministers displaced the chairman of the Marcus Bokkerink agency and replaced him with the previous head of Amazon UK, Doug Gurr.
According to Microsoft, the preliminary decision of the CMA doesn’t reflect how the cloud computing market works in practice “, and argues that British customers have expressed” limited concerns “of the competition within the industry.
The British antitrust regulatory authority has also began to envision whether Amazon and Microsoft should receive additional supervision as a part of the brand new regime Digital Market Digital Market within the Cloud industry as a “strategic market status”.
Microsoft said that by excluding Google from this consideration and other potential interventions in line with the market study, “The growth of Google on the British market may enable the competition to grow by the expansion of the search giant within the search gig.
The Azure and Amazon web services from Microsoft dominate the worldwide cloud computing industry, each of which has a share of as much as 40 percent of British customer expenditure. Google Cloud is usually considered third.
In response to this, the CMA said on Friday: “The examination of the Cloud market took under consideration the results of AI on the competition on the Cloud Services market. The group analyzes all feedback that it has received to this point – including the answers from Microsoft and others – and still has to make a final decision. ”
The British Cloud Services examination began when the Media and Communication Regulatory Authority of OFCOM opened a market study in October 2022 and transferred to the CMA a 12 months later.
The CMA Inquiry Group said that a general lack of competition bothered the flexibility of consumers to “change the cloud provider or use several clouds, which ultimately can affect the value and quality of cloud services”.
