Think Tank Warns Big Tech Dominance Threatens UK AI Sovereignty
AI-generated image · US National Wire
A report from the Institute for Public Policy Research claims the CMA's failure to curb market power is stifling British innovation.
The United Kingdom risks losing the artificial intelligence race due to the overwhelming market power of Big Tech, as first reported by The Register in a report from the Institute for Public Policy Research (IPPR).
Reporting from The Register notes that the IPPR found 79 percent of UK businesses relying on digital platforms fear that tech giants are using their dominance to limit competition. The report identifies several key players controlling critical infrastructure: Google handles over 90 percent of UK internet searches, while Microsoft and AWS each control 30 to 40 percent of cloud service spending. Additionally, Microsoft is currently under investigation for its dominance in business software.
The IPPR argues that the Competition and Markets Authority (CMA) has failed to create conditions for competitors to thrive. The report alleges a collapse in ministerial support for the regulator, noting that in 2025, the government asked the CMA to prioritize inward investment—a move interpreted as a signal to be lenient toward Big Tech. This environment has reportedly led to voluntary commitments from companies rather than binding rules, as well as the resignation of the CMA's cloud inquiry chair, who cited a "glacial pace" of reform.
The stakes are particularly high for AI, a pillar of the government's AI Opportunities Action Plan. The IPPR warns that home-grown AI firms are overly dependent on infrastructure controlled by overseas giants. This concentration is further exacerbated by Microsoft, Google, and Amazon investing more than $20 billion in major AI developers, a trend that has drawn scrutiny from the CMA and the US Federal Trade Commission.
Roa Powell, a senior research fellow at the IPPR, stated that the CMA possesses the necessary tools but requires "clear political backing" to act boldly. In response, a CMA spokesperson told The Register that the agency has already implemented interventions in Google search and mobile ecosystems and is currently investigating Microsoft's business software and cloud licensing practices.