Amazon.com Inc. (Amazon) has announced it intends to launch web hosting services in Germany. The company will establish a new data center near Frankfurt in a move intended to enable Amazon to cater for increased demand for its services in Europe.
News of Amazon's intentions comes in the wake of fierce criticism of American internet companies in Europe, and especially Germany. Almost one year ago it was claimed the United State's National Security Agency (NSA) had been spying on German chancellor Angela Merkel by tapping her mobile phone. Other revelations have suggested that her predecessor, former chancellor Gerhard Schröder, had been put under surveillance by the NSA after opposing military action in Iraq in 2002.
Against this backdrop, there has been general sentiment in Germany that US internet companies pose a threat to individual freedom. As a result, Germany has used its presence in the European Union to attempt to reduce the influence of company's like Google. Since the revelations were released, there have been calls from the German authorities that such companies should do their business from physical locations within Germany. This is likely one spur for Amazon's intentions in Germany. The other is almost certainly the fact that Amazon's second-biggest market is Germany.
Despite official concerns, German consumers are big users of US web hosting services. Although the bulk of Germans state they oppose companies collecting personal data, an equal number feel the products of companies such as Amazon are beneficial. As a result, Amazon's move is much more likely driven by revenue issues than German government concerns.
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