CMA chief: ‘The right thing is to keep this market open for competition’
For anyone still confused about that argument, I'll add a little bit of perspective about our UK history of telecoms - which cloud as a service, for games or otherwise will eventually map to with or without convergence to a natural monopoly.
Telecoms in the UK was an extension of our Crown's Postal Service (Royal Mail) resulting in completely state installed network to the end user and ran just like our postal service was - with other players doing business contracts, but the majority of users were all using BT and Royal Mail for each service - until some EU treaty was signed and we then started to deregulate the network.
This change allowed other companies to install local loops to let them LCR (Least Cost Route) telecoms calls without using the BT network at all, but we also then deregulated the local loop carrying aspect of the BT network, and when digital telecoms via ADSL(Asynchronous Digital Subscriber Line) became viable through cheap electronics broadband by LCR became a new market, and eventually BT was required to divest its network business from its service business - the network then becoming OpenReach - which has an installation on the local-loop to every house in the UK, and so provides a flat fee service to ISPs with a line capable QoS at the line's physical capability, with user QoS limited by the ISP's sold service. Where other competing - local loop - services have been installed too, users have a wide variety of choices between (local loop) ADSL/DSL services carrier over OpenReach by many different ISPs competing on services/price and cable or fibre services by fewer companies in highly populated areas such a VirginMedia or Giganet.
What Amazon and Microsoft probably don't realise is that all the money they've spent on infrastructure for Cloud and the 70% market share they have in the UK means they will ultimately end up as the OpenReach, meaning their services will be decoupled from their infrastructure to flat fee provide the cloud compute to other service providers. Them having too much infrastructure and service, gave them no chance of avoiding that scenario. As is (without ATVI) they might still avoid that flat margin future on their infrastructure so long as the market has enough competition to keep prices at bay - say like our Mobile phone network.
So the CMA have actually saved Microsoft a tonne of ofcom regulation and lost revenue in years to come with this decision. They should probably be grateful they are getting to lose just $3b, now