By Diana Moss
This article unpacks the unique features of the cloud market, including rapid expansion through acquisition, static market structure, and weak merger enforcement. The analysis draws attention to the important link between market structure and conduct and its implications for strategic incentives around market positioning, entry and expansion by smaller rivals, and innovation competition.
A major implication is that competition enforcers and policymakers should pursue vigorous merger enforcement, at the same time they look carefully to identify competitive concerns around strategic conduct that could potentially hamper competition in cloud technology.
