The report identifies cloud computing as critical infrastructure and highlights a significant concentration problem in Canada, with Amazon, Google parent Alphabet, and Microsoft controlling approximately 85 percent of the market. Cloud computing—which involves renting software, processing power, and storage accessible through the internet—underpins essential services from government operations and banking to streaming video and social media. Joel Blit, an economics professor at the University of Waterloo, emphasizes that such high market concentration warrants concern about whether dominant companies can exercise excessive market power.

A central issue identified in the report is the substantial cost for customers to switch between cloud providers. Curtis McCord, policy analyst with the Canadian Anti-Monopoly Project and report co-author, argues that simply introducing Canadian "sovereign" providers would not address the underlying problem if switching remains expensive and difficult. The report warns that without compatibility requirements, new domestic alternatives could create "maplewashed dependency"—essentially replacing reliance on U.S. companies with lock-in to incompatible domestic systems.

While major providers have made some moves toward portability—Google has eliminated transfer fees, Amazon offers free data transfers in certain cases, and Microsoft provides credits for some customers—McCord notes that the ability to export data does not guarantee seamless integration with competing systems. These measures largely followed pressure from European and United Kingdom regulators. The report recommends that Canada pursue international standards promoting compatibility between cloud providers to increase competition and reduce dependency on a few U.S. firms.

Experts warn that concentrated control of cloud infrastructure could have broader implications as artificial intelligence adoption accelerates. Blit cautions that high switching costs and concentrated hyperscaler control could determine access to AI, potentially disadvantaging Canada. The federal Competition Bureau reports it is not currently studying cloud computing in Canada, though a draft version of Canada's national AI strategy acknowledges the need for significant investment to reduce reliance on foreign technology companies for cloud services.