Amazon (AMZN) -) share edged lower in pre-market trading, while Microsoft (MSFT) -) lagged its mega-cap tech peers, after regulators in Britain called d for an antitrust probe into the pair's cloud market dominance.
Ofcom, Britain's media watchdog, asked the Competition and Markets Authority to investigate allegations that the pair's business tactics make it more difficult for British firms to user multiple cloud providers or switch from one of the two main providers to a rivals such as IBM IBM and Oracle ORCL in a market the regulator estimates is worth around $9 billion.
An initial response is expected in a few months, with the probe likely to be completed by April of 2025.
"The CMA (Competition and Markets Authority) will now conduct an independent investigation to decide whether there is an adverse effect on competition, and if so, whether it should take action or recommend others to take action," the watchdog said in a statement.
"Strong competition ensures a level playing field so that market power doesn't end up in the hands of a few players - unlocking the full potential of these rapidly evolving digital markets so that people, businesses, and the UK economy can get the maximum benefits," the CMA added.
Amazon shares were marked 0.39% lower in pre-market trading to indicate an opening bell price of $126.55 each. Microsoft, meanwhile, slipped 0.27% lower to $318.11 each.
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