WASHINGTON—Following the UK Competition and Markets Authority’s (CMA) announcement of a new package of actions on business software and cloud services, encompassing both its new Digital Markets, Competition and Consumers Act (DMCCA) and prior market investigations under its Enterprise Act, the Information Technology and Innovation Foundation (ITIF) released the following statement from Joseph V. Coniglio, ITIF’s senior counsel and director of antitrust and innovation policy:
The CMA’s decision not to open a strategic market status (SMS) investigation into cloud services under the DMCCA is a prudent exercise of its authority that will facilitate continued investment and innovation in the industry. Cloud markets are dynamic, growing, and competitive—hardly the sort of market that warrants ex ante regulation.
Indeed, the CMA’s notice that, following the closure of its long-running market investigation into cloud services, it is working with Amazon and Microsoft to address concerns about certain behavior in this space shows that the UK’s existing antitrust laws are more than sufficient to protect consumers and competition.
Unfortunately, the CMA’s announcement is tainted by its decision to open an SMS investigation into Microsoft’s business software under the DMCCA. This isn’t the 1990s: Microsoft’s office suite faces not only intense competition from Google and other players but also disruption from how content is generated in the age of artificial intelligence.
What’s more, the CMA is now three for three in investigating American firms under the DMCCA. At a time when digital regulations targeting leading U.S. technology companies are increasingly viewed as de facto trade barriers, this action raises concerns from a country with which the United States has long enjoyed a special relationship.
Rather than push forward with ever more regulatory actions under the DMCCA, the UK and the U.S. should pursue opportunities to increase shared investment and innovation to ensure the West maintains leadership in the 21st century amid China’s relentless quest for global techno-economic dominance.
Contact: Sydney Mack, [email protected]
