Airlines around the world experienced disruption on an unprecedented scale after a widespread global computer outage grounded planes and created chaos at airports. Photo: David Paul Morris/Bloomberg CrowdStrike Glitch Highlights Risk of Single Point of Failure in Cybersecurity
Competition regulators took notice when a faulty software update from CrowdStrike, a major player in the cybersecurity industry, took down Windows systems all over the world. FTC Chair Lina Khan called it another example of "how concentration can create fragile systems."
July 30, 2024 at 02:19 PM
7 minute read
What You Need to Know
- The recent IT outage caused by a bug in CrowdStrike's software has highlighted the risks associated with too much market concentration.
- The cybersecurity market is heavily dominated by a few key players, with CrowdStrike and Microsoft holding significant shares.
- In response to the outage, lawmakers and the Federal Trade Commission are scrutinizing the cybersecurity market's concentration and its implications for critical infrastructure.
Competition regulators have been on high alert for risks posed by too much market concentration, where a single point of failure can disrupt business worldwide. A cascading information technology outage that recently grounded hundreds of flights, upended health care and halted banking across the globe has been no exception.
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