Atlas VPN, a smaller but very popular VPN service, has ceased operations on April 24, 2024, as previously announced at the end of March 2024. All current paying subscribers have been transferred to sister company NordVPN. Atlas VPN is just one in a long line of VPNs that have been adopted by larger security services in recent years.
Atlas VPN cited increasing competition and rising costs as the main reason for the closure. Atlas VPN explained that the “insurmountable challenges” had become too great and it could no longer compete in a highly competitive market.
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The popular freemium VPN service was acquired by Nord Security in 2021, with the promise that Atlas VPN would continue to operate as an independent company. That has now changed, and the entire user base of around six million members moved to the much larger NordVPN after the closure. This continues a worrying trend: consolidation in the VPN market.
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The VPN consolidation trend
The global VPN market is worth around €38 billion. It’s no wonder that tech companies are racing to control as much of this wealth as possible. What was once a diverse market made up of small, independent VPN companies has now become a homogenous security consortium.
Financially strong security conglomerates have systematically bought up smaller VPNs and integrated them into their own companies. Atlas VPN is just the latest example.
Market consolidation is not inherently a bad thing, and mergers are common in the fast-moving world of technology. But these umbrella companies often intentionally hide the fact that they own VPNs themselves in order to keep the truth from consumers.
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There’s something endearing about an independent VPN founded and run by a ragtag team of privacy advocates. And that’s exactly the message these conglomerates are promoting, even after they’ve long since acquired smaller VPNs and replaced the original founding team.
In a 2022 report, VPN Pro found that 105 of the world’s most popular VPNs are owned by just 24 companies. That may sound like a lot, but consider that six of the 10 most popular VPNs are owned by the same three companies: Kape Technologies, Ziff Davis, and Nord Security.
Kape Technologies, formerly known as Crossrider, owns three of the most popular VPNs including ExpressVPN, Private Internet Access and CyberGhost VPN. The company came under fire in 2018 when its adware Crossrider allowed third parties to display advertisements in the browsers of unsuspecting users – the company rebranded to distance itself from the scandal.
Ziff Davis, formerly J2 Global Inc, owns the top VPNs IPVanish and StrongVPN. The company also owns a number of tech and media sites. These include Ookla, Down Detector, Encrypt.me, Mashable, IGN and PCMag.com.
Surfshark merged with NordVPN’s parent company, Nord Security, in 2022.
Surfshark
Nord Security owns two of the largest VPNs currently on the market: Surfshark and the mega-popular NordVPN. Aside from a data breach in 2021, Nord Security has maintained a relatively clean image despite its huge market share. With the acquisition of Atlas VPN, Nord is now one of the largest VPN providers in the world.
Competition in the market is good for VPNs. It drives progress and innovation and keeps prices low. If only a few companies own the majority of VPNs, this means there is less incentive to innovate and prices can be manipulated to benefit the company rather than the consumer.
The VPN industry puts user privacy first, which means transparency in the ownership and operations of all these companies is crucial. As a VPN user, you want to be sure you know which companies control and manage your data. Mergers can muddy the waters when it comes to data ownership and legal responsibilities.
The dissolution of Atlas VPN and the merger with NordVPN show that the trend towards VPN consolidation is unbroken – at least until all the smaller providers are bought up. For consumers, these ongoing mergers and acquisitions mean that a smaller and smaller number of companies will have control over your data. Not only price competition suffers, but also the innovation that a rich and diverse VPN ecosystem brings with it.
This article originally appeared at our sister publication PC-World and was translated and adapted by us.
