OECD Cloud-Computing Competition Study Offers Solutions in Search of a Problem
Arecent Organization for Economic Co-operation and Development (OECD) policy paper on competition in cloud computing frames the sector as fragile, with an imminent threat of anticompetitive behavior. As the paper notes, 70-80% of the global cloud share is controlled by Microsoft, AWS (Amazon Web Services), and Google. This paints the picture of a concentrated market.
It isn’t, however, the full story. The cloud market continues to experience shifting market shares, meaning that entrenched incumbents may not be entrenched for long. For instance, AWS’ market share dipped from 45% in 2019 to 39% in 2021. Despite the continued potential for such rapid shifts, coupled with trends toward declining prices and fast-paced innovation, the paper’s authors still raise concerns about the potential for future anticompetitive behavior, flag how it may come about, and raise options for enforcers and policymakers to address it.
Are they jumping the gun? Let’s consider the evidence.