Amazon and Microsoft Avoid Formal Designation in Cloud, but Another SMS Investigation Looms
On March 31 2026, the CMA stepped back from opening a strategic market status (SMS) investigation under the UK's new Digital Markets Competition Regime (DMCR) into cloud services, instead accepting voluntary commitments from Amazon Web Services and Microsoft Azure to make certain changes to their business practices, including lowering egress (exit) fees, making it easier to switch and improving interoperability with other cloud operators.
Such an approach augurs well for future engagement as the CMA pivots from ball-breaker to deal-maker and follows decisions in other CMA investigations (including of Apple and Google in app stores) to accept voluntary commitments in place of formal conduct requirements (CRs). Even still, the settlement in cloud is exceptional, occurring even before an SMS investigation was launched. This demonstrates a degree of pragmatism on the part of the CMA (and good