Cloud computing, in which Amazon and Microsoft are the biggest players followed by Alphabet’s Google, doesn’t pose competition concerns yet because of Europe’s Gaia-X initiative, EU antitrust chief Margrethe Vestager said on Monday.
Cloud computing services have seen demand soar, driven in part by the COVID-19 pandemic.
They have become a big driver of growth at the big tech companies, with AWS generating 13% of Amazon’s revenue last year and 74% of its operating income while Microsoft’s Intelligent Cloud unit, of which Azure is a big chunk, brought in 37% of its overall sales.
The market power of the big companies has sparked unease at smaller rivals in recent years, with German software provider NextCloud, France’s OVHcloud and two other companies filing complaints about Microsoft’s cloud practices to Vestager.
“No, so far we’ve had no concerns,” Vestager told Reutersin an interview when asked if she was worried about companies potentially abusing their dominance.
She said Gaia-X, a project to create secure and efficient cloud data that seeks to reduce the EU bloc’s dependence on Silicon Valley giants, would boost competition.
“This is not something that we are engaged in, but I basically see it as pro-competitive when you have someone to show potential customers that there are more than two giants where you can place your business,” she said.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
DOJ and FTC Introduce Website for Reporting Anti-Competitive Healthcare Practices
Apr 18, 2024 by
CPI
US Congress Advances Legislation to Compel TikTok Sale
Apr 18, 2024 by
CPI
UK Financial Sector Advocates Enhanced Regulatory Accountability
Apr 18, 2024 by
CPI
Google and All 50 States Defend $700 Million Consumer Settlement
Apr 18, 2024 by
CPI
Colorado Enacts First Law to Protect Consumer Brainwave Data
Apr 18, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI