Cloudflare Outage Ruin Your Morning? Consumer Groups Say Blame Profit-Hungry Big Tech Monopolists
"Congress and regulators must finally step in and crack down on anticompetitive behavior, opening markets, requiring interoperability, and ensuring smaller tech firms can compete," said one advocate.
Just weeks after major Amazon Web Services and Microsoft Azure outages, Cloudflare on Tuesday became the latest company to "break the internet," prompting consumer watchdogs to take aim at Big Tech and call out industry consolidation.
"This outage is another brutal reminder that the internet is far too dependent on a tiny handful of tech giants," said Public Citizen's Big Tech accountability advocate, J.B. Branch, in a statement. "For years, industry lobbyists have insisted that deregulation would spark innovation from smaller companies. Instead, we got the opposite: mass consolidation of data, compute, and infrastructure into the hands of a few dominant firms whose failures now cascade across the globe."
"Governments and companies continuing to contract with the same handful of companies are increasing the fragility of both the internet and entire economies," Branch continued. "Congress and regulators must finally step in and crack down on anticompetitive behavior, opening markets, requiring interoperability, and ensuring smaller tech firms can compete so the entire digital economy isn't held hostage by the failures of a few dominant companies."
After Amazon's outage last month, Public Citizen and other groups—including the American Economic Liberties Project, Demand Progress Education Fund, and Tech Oversight Project—called on Federal Trade Commission Chair Andrew Ferguson "to swiftly conduct a market structure review of leading cloud services providers, including but not limited to Amazon, to assess how their market dominance and use of monopoly power to stifle competition is creating systemic fragility across industries."
"Big Tech is clearly creating systemic dangers that warrant proactive oversight and aggressive intervention by the FTC, on behalf of the American people and as soon as possible."
"This probe should also examine dependencies of key sectors (such as financial services, telecommunications, and government services) on any single cloud provider and the extent to which those dependencies pose systemic risks to data security and privacy and consumer protection, as well as to our open markets and the resilience of our national and global infrastructure systems," the coalition argued. "We urge you to then take robust agency action to counter these systemic dangers, particularly to bring diversification to the cloud industry."
"Given the enormous stakes, the FTC should not defer action until the next crisis—the FTC has the mandate, the requisite knowledge, and the legal authorities to tackle this challenge now," the coalition concluded. "Big Tech is clearly creating systemic dangers that warrant proactive oversight and aggressive intervention by the FTC, on behalf of the American people and as soon as possible."
Just a few weeks later, the Cloudflare outage on Tuesday impacted websites including ChatGPT, Coinbase, Dropbox, X, Shopify, Spotify, Zoom, the Moody credit ratings service, and many more. According to Cloudflare, the San Francisco-based company offers over 60 cloud services globally, and it protects "20% of all websites."
In a statement to Forbes, a company spokesperson said that "the root cause of the outage was a configuration file that is automatically generated to manage threat traffic. The file grew beyond an expected size of entries and triggered a crash in the software system that handles traffic for a number of Cloudflare’s services."
Stressing that there is "no evidence that this was the result of an attack or caused by malicious activity," the spokesperson added that "we expect that some Cloudflare services will be briefly degraded as traffic naturally spikes post incident but we expect all services to return to normal in the next few hours."
Cloudflare also said on X—which is now working again—that "we always strive to be as transparent as possible in these types of situations, and we will be publishing an in-depth blog shortly."
Meanwhile, Demand Progress Education Fund highlighted the coalition's recent letter to the FTC, and Emily Peterson-Cassin, the group's policy director, said that "yet again, a failure at one company disrupted the lives of people all around the globe."
"Big Tech's relentless drive to become the only fish in the pond and centralize the internet in their hands threatens our economy and our national security," she added. "The FTC has the knowledge and the power to help prevent this from happening again. For all our sakes, the agency must take action immediately."
