Watchdogs Blame Corporate Concentration for Global IT Outage

Digital rights advocates responded to Friday's havoc-wreaking global technology outage by sounding the alarm on the Big Tech monopolies.

The outage—which is being attributed to a software update by the U.S.-based cybersecurity firm CrowdStrike—sparked worldwide chaos on Friday, causing so-called "blue screens of death" on computers using Microsoft Windows. The outage grounded commercial flights and caused serious disruptions to transportation, financial, and healthcare systems.

"Today's massive global Microsoft outage is the result of a software monopoly that has become a single point of failure for too much of the global economy," George Rakis, executive director of the advocacy group NextGen Competition, said in a statement.

"For decades, Microsoft's pursuit of a vendor lock-in strategy has prevented the public and private sectors from diversifying their IT capabilities," he continued. "From airports to hospitals to 911 call centers to financial systems, millions today are feeling the consequences of the greed and ego of one of the most egregious offenders in Big Tech."

Emily Peterson-Cassin, who heads Demand Progress' corporate power program, said that "today's outage shows how one software issue stemming from only one or two companies can ground flights, take down hospital systems, stop 911 calls, and cut off access to the internet in one fell swoop."

"Economy-wide reliance on a few giant companies is a serious fundamental risk to Americans," she asserted. "No one regulatory or legislative intervention will prevent this kind of situation, but there are plenty of policies that can reduce the danger. Efforts to empower regulators' ability to tackle the risks posed by concentrated corporate actors are critical to protecting Americans from these kinds of failures."

Bloomberg columnist Parmy Olson—who focuses on tech issues—said that Friday's outage "should spur Microsoft and other IT firms to do more than simply administer a Band-aid."

"The bigger problem is the supply chain itself for cloud computing and, by extension, cybersecurity services, which has left too many organizations vulnerable to a single point of failure," she noted. "When just three companies—Microsoft, Amazon, and Google—dominate the market for cloud computing, one minor incident can have global ramifications."

European Union nations "are furthest ahead in addressing the market stranglehold that these so-called hyperscalers have with the new E.U. Data Act, which aims to lower the cost of switching between cloud providers and improve interoperability," Olson noted.

"U.S. legislators should get in the game too," she argued. "One idea might be to force companies in critical sectors like healthcare, finance, transportation, and energy to use more than just one cloud provider for their core infrastructure, which tends to be the status quo."

"Instead, a new regulation could force them to use at least two independent providers for their core operations, or at least ensure that no single provider accounts for more than about two-thirds of their critical IT infrastructure," Olson added. "If one provider has a catastrophic failure, the other can keep things running."

However, most congressional efforts to rein in Big Tech monopoly power and encourage competition have failed or languished amid opposition and obstruction from lobbyists and corporate lawmakers.

Ultimately, Rakis stressed, "it is long overdue that Microsoft and other Big Tech monopolies are broken up—for good."

"Microsoft has turned a blind eye to cybersecurity vulnerabilities for years and enough is enough," Rakis said. "Not only are these monopolies too big to care, they're too big to manage. And despite being too big to fail, they have failed us. Time and time again. Now, it's time for a reckoning. We can't continue to let Microsoft's executives downplay their role in making all of us more vulnerable."