The Office of Communications commonly known as Ofcom in United Kingdom will investigate the world’s biggest tech companies to ensure their dominance in areas such as cloud computing, messaging and smart devices works for the people and businesses of Britain, the communications regulator has said.
The cloud services investigation, which will take priority out of the three issues, will look at Amazon, Microsoft and Google. Between them, these “hyperscalers” control more than four-fifths of the UK’s cloud computing market, about half of which is made up by Amazon.
Over the coming year, the regulator will begin investigating a wider range of digital services. WhatsApp, FaceTime and Zoom will come under the lens, with Ofcom looking at how their market power is affecting traditional calling and messaging, and whether the lack of interoperability “raises potential concerns”.
Smart speakers such as Amazon’s Echo, Google’s Nest and Apple’s HomePods will be checked, alongside smart TVs and digital personal assistants, to ensure their effects on consumer behaviour do not distort the market for TV, radio and online content.
The investigations will take place under the Enterprise Act 2002, which gives Ofcom the power to issue market studies in digital communications markets, and to examine potentially unfair commercial practices and contract terms.
Ofcom is expected to receive further powers to regulate internet content providers in the online safety bill. Initially planned to be passed before the summer recess, the bill was dropped for timing reasons, but the new culture secretary, Michelle Donelan, has promised to continue with the legislation with some changes.
