AMZN stock price at $117.17 at 12:41 PM EDT on Thursday.

The regulator is looking into the £15 billion British cloud computing business due to worries that only three US companies control more than 80% of the market. As part of a broader investigation into the digital communication markets, Ofcom is looking into the dominance of US technology giants Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), and Google (NASDAQ:GOOG).

The regulatory body will publish a market analysis in the “coming weeks” that will examine the degree of competition in cloud services and potential barriers for new entrants into the sector. As part of the preparations under the Online Safety Bill, the regulator is getting ready to govern the larger internet.

According to Ofcom, the three biggest players Amazon Web Services (AWS), Microsoft, and Google, who together account for around 81 percent of market revenue, control the public cloud infrastructure services market in the UK. In compliance with the Enterprise Act of 2002, the regulator and the Competition and Markets Authority have started a “market study.” Ofcom declared: “We have collaborated extensively with the CMA on the compilation of the market research and will continue to do so.

AMZN Stock Analysis, Problems With Allocating Its Capital

“Ofcom will be in charge of doing the market research, leveraging our depth of knowledge in the communications sector, and recognizing the growing significance of the cloud in internet infrastructure.” In addition, Selina Chadha, director of connectivity at Ofcom, stated: “Digital services have altered the ways in which we live, work, play, and conduct business.”

“That’s why we’re launching a program of work to scrutinize these digital markets, find any competition problems, and make sure they’re functioning properly for individuals and businesses who rely on them,” the statement continued.

In addition, Ofcom plans to conduct a more thorough inquiry into other digital marketplaces in the coming year. This investigation will focus on products like connected TVs and smart speakers, as well as services like FaceTime, Zoom, and WhatsApp.

In May, Professor Diane Coyle of the University of Cambridge opined that British regulators “need to pay greater attention to how companies have used the internet and cloud computing to radically cut the cost of providing products and services to each user – potentially to the point of shutting out new entrants to the market.”

The former member of the Competition Commission stated that the economies of scale obtained by the largest digital service companies could make it harder for new entrants to “overthrow the incumbents,” thus limiting market competition and hence driving up costs.

AMZN Stock Outlook

As the market concentrated on macroeconomic factors and the Federal Reserve Bank’s response to growing inflation, a wide range of companies experienced declines on Wednesday. Sadly, there were some unintended consequences of the most recent rate increase.

In response to this, AMZN stock (NASDAQ:AMZN), Meta Platforms (NASDAQ:META), and Alibaba all experienced declines of up to 5%, 3.1%, and 2.8%, respectively. AMZN stock and the other two stocks were still depreciating at market closing, each down 4.9%, 3%, and 2.7%.

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