A think tank has warned that the market power of major technology companies is weakening competition in the UK and could prevent the country from capturing the economic benefits of artificial intelligence. The Institute for Public Policy Research argues that the Competition and Markets Authority needs clearer political backing to intervene more quickly and forcefully, rather than relying on voluntary commitments. It says the issue matters because AI is central to the government’s growth plans, yet British firms increasingly depend on infrastructure owned by overseas giants.

The report says 79 per cent of UK businesses using digital platforms fear Big Tech could use its dominance to restrict competition, placing this concern above access to finance or talent. Google accounts for more than 90 per cent of UK searches, while Microsoft and AWS each hold roughly 30–40 per cent of cloud customer spending; AI infrastructure is also concentrated around Nvidia and the large cloud providers. Microsoft, Google and Amazon have invested more than $20 billion collectively in leading AI developers, partnerships already identified as potential competition risks by UK and US regulators.