The German Federal Cartel Office (Bundeskartellamt) is intensifying its scrutiny of major cloud service providers, citing concerns over market dominance and potential lock-in effects. Andreas Mundt, President of the Bundeskartellamt, highlighted the concentrated market structure, noting that Amazon Web Services, Google Cloud and Microsoft Azure collectively offer the most comprehensive cloud services.
Mundt stated the office is carefully examining whether these providers are leveraging their market position and the existence of so-called “lock-in effects” wherein customers face considerable difficulty transitioning to alternative cloud solutions.
The Cartel Office is also acknowledging the potential for further consolidation of power within the tech sector due to advancements in artificial intelligence (AI). He pointed to significant data holdings within companies like Meta and Google, combined with their established platforms like YouTube and leading search indexes, as contributing factors.
The Bundeskartellamt is conducting ongoing investigations focused on the utilization and impact of AI technologies. Mundt emphasized that regulating the digital industry extends beyond competition concerns and touches upon Europe’s digital sovereignty. He argued against the dependence on foreign entities for the continent’s digital infrastructure and championed the development of a robust, independent European digital ecosystem.
