The Federal Trade Commission (FTC) is probing the business practices of cloud computing providers to better understand the market power of these companies, their impact on competition, and potential security risks associated with their services. This investigation comes amid growing concerns about the dominance of large tech firms and the increasing dependence of businesses on cloud services.
In a request for Information, FTC staff are seeking information about the competitive dynamics of cloud computing, the extent to which certain segments of the economy are reliant on cloud service providers, and the security risks associated with the industry’s business practices.
Cloud computing refers to the delivery of computing services, such as data storage, servers, networks, software, and analytics, over the Internet. This technology has gained tremendous popularity in recent years, and it is used by a wide range of industries for on-demand access to computing resources.
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With the growing dependency on cloud computing, it is crucial for companies to implement proper security measures to protect their data and ensure the privacy of their clients.
“Large parts of the economy now rely on cloud computing services for a range of services,” said Stephanie T. Nguyen, the FTC’s Chief Technology Officer. “The RFI is aimed at better understanding the impact of this reliance, the broader competitive dynamics in cloud computing, and potential security risks in the use of cloud.”