https://techmonitor.ai/policy/digital-economy/uk-cma-ibms-6-4bn-hashicorp

The UK Competition and Markets Authority (CMA) is set to initiate a phase one investigation into IBM's previously announced acquisition of HashiCorp, valued at $6.4bn. HashiCorp disclosed in an 8-K filing with the US Security & Exchanges Commission that it received a notification last week from the regulatory body concerning this review. Listed on the Nasdaq, HashiCorp specialises in multi-cloud infrastructure automation, a sector under increasing scrutiny by competition watchdogs. The announcement comes amid an ongoing investigation by the CMA on the recommendation of fellow regulator Ofcom into the state of competition within the overall UK cloud market.

In its market study, Ofcom pinpointed several market features that complicate the ability of customers to switch or use multiple cloud suppliers. Issues such as egress fees, loyalty discounts, and technical barriers have been identified as significant impediments to competition in the cloud services market. Reflecting on these market dynamics, the CMA's Annual Plan for 2023 to 2024 prioritised ensuring effective competition in digital markets, particularly in light of the Digital Markets, Competition and Consumer Bill. This ongoing investigation into cloud services is set to play a crucial role in shaping the competitive landscape of the UK's digital markets, with the CMA expected to conclude its findings by April 2025.