IS MERGER ENFORCEMENT KEEPING UP WITH THE CLOUD? BY - DIANA L. MOSS

The cloud has This article focuses on the role of antitrust enforcement, become a ubiquitous tool, with an estimated 60 percent of especially merger enforcement, as an essential element of global corporate data stored in the cloud in 2022.2 More- broader policy in the cloud sector. [...] Likewise, more competition in cloud computing services is likely to produce lower prices and switching costs, and decrease EVOLVING COMPETITION the possibility of vendor lock-in for cloud customers with AI workloads.12 CONCERNS IN CLOUD The foregoing examples highlight the potential scope of MARKETS competition issues relating to cloud markets, prompting us to consider how the agencies will initia. [...] Cloud acquisitions by the top provid- ers range from small transactions, many of which fall under The myriad issues raised by the explosive development the federal Hart Scott Rodino Act antitrust reporting thresh- of cloud technology and the evolution of the cloud mar- olds, to some worth almost $20 billion.17 ket have been largely displaced by debates over the dig- ital sector more generally. [...] The bulk of the “buildout” in cloud capability by the top To get a better sense of this disconnect, it is important to eight providers occurred between 2000 and 2015.21 In the note that three major cycles of acquisition-driven growth early 2000s, about four major providers were behind most have produced the large digital business ecosystems that cloud acquisitions. [...] cloud integration), and coordination be- The dispersion in shares of the major cloud players, cou- tween cloud providers and vendors to customize infrastruc- pled with the fringe of smaller players, keeps market con- ture to handle big data and AI workloads, is spurring cloud centration hovering just below the highly concentrated firms to explore strategic partnerships.24 Such partnerships level a.