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Amazon Web Services (AWS) has reported a major outage impacting online services, igniting fears it will have “major implications for businesses”.

Everyone from small businesses to major banks is feeling the impact, with Lloyds and Halifax also reporting disruptions to their online services.

Small business owners said they are "heavily reliant" on AWS and it will have a “significant impact”.

HMRC, Xero, Canva and Klaviyo are also affected, customers are reporting, along with Amazon, Alexa, Snapchat, and Fortnite.

AWS, which is part of the retail giant Amazon, said in an update on its status page there it is suffering from "increased error rates and latencies" for multiple services.

In a statement on its website, it said: "We are actively engaged and working to both mitiga

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