Cloud Computing Giants Under FTC Investigation: What You Need to Know

The Federal Trade Commission (FTC) is investigating the potential impact of the $500 billion cloud computing market on the US economy. The regulatory agency has issued a request for information to gain insight into the business practices of commercial cloud providers such as Amazon, Microsoft, and Google. This includes an investigation into their market power, potential security risks, and competition. Cloud computing companies have become essential to the internet, hosting the data of nearly 70% of internet users, 60% of corporations, and an increasing number of government customers, including the CIA, NSA, and Pentagon. The FTC is interested in understanding the impact of cloud computing on several industries, including healthcare, finance, transportation, e-commerce, and defense. They will investigate the extent of reliance on a small number of cloud service providers, the ability of customers to negotiate contracts, incentives for using a single provider, security risks, artificial intelligence-related products or services, and how cloud providers identify and notify customers of security risks. The FTC's Office of Technology, Bureau of Competition, and Bureau of Consumer Protection will collaborate on the investigation.