A U.K Competition and Markets Authority inquiry group on Tuesday provisionally recommended that the regulator should consider investigating Amazon Web Services (AWS) and Microsoft's Azure cloud unit under new digital markets legislation.

Amazon Inc. and Microsoft Corp.’s UK cloud service offerings are facing closer scrutiny in the UK as the watchdog said it had concerns over their market dominance.

The regulator said the enquiry provisionally found that the lack of competition could result in higher costs, less choice and innovation, and lower quality of service for businesses and organizations across the British economy.