Spain’s National Markets and Competition Commission (CNMC) has published a market study proposing regulatory and policy measures to improve competition in the cloud services sector, which currently generates approximately €1.9 billion annually in the country. The watchdog highlighted significant market concentration, noting that global hyperscalers Amazon and Microsoft combined command a 60% to 70% market share in key infrastructure and platform segments, well ahead of Google.
According to the regulator, entry and expansion barriers hinder smaller competitors and lock in business customers, with only 2% of corporate clients having switched their main provider and just 5% utilizing multicloud strategies. The study points to interoperability restrictions, high data egress fees, dynamic discount structures, and fragmented digital regulations as key drivers of customer lock-in. To address these distortionary commercial practices, the CNMC recommends applying strict merger controls, incorporating cloud services into the EU Digital Markets Act framework, lowering compliance burdens for smaller operators, and restructuring public procurement rules to eliminate technology bias and prevent vendor lock-in within public administrations.
