Google Whistleblowing Microsoft's Cloud Practices

Google has accused Microsoft of engaging in anti-competitive cloud practices in a letter to the Federal Trade Commission (FTC), responding to the FTC’s request for comment on the cloud computing business practices.

• Google raises concerns about Microsoft’s licensing terms, claiming they lock in clients and exert control over the cloud computing market.
• Google argues that these licensing restrictions hinder businesses from diversifying their enterprise software vendors.

In a letter to the Federal Trade Commission (FTC) on Wednesday, Google accused Microsoft of engaging in anti-competitive cloud practices regarding its Azure cloud unit. The letter is a response to a broad FTC request for comment on the business practices of cloud computing providers.

In its letter, Google, a subsidiary of Alphabet, raised concerns about Microsoft’s licensing terms, which it claims effectively lock in clients and exert control over the cloud computing market. According to the tech giant, Microsoft’s strong presence in products such as Windows Server and Microsoft Office makes it difficult for clients to use alternatives to Microsoft’s Azure cloud infrastructure. These licensing restrictions, according to Google, prevent businesses from diversifying their enterprise software vendors. The software tycoon then highlighted potential national security and cybersecurity risks associated with Microsoft’s control.

Google’s complaint comes after years of Google itself facing antitrust concerns. In fact, the U.S. Department of Justice filed its second antitrust lawsuit against Google in January 2021, targeting its advertising business. An older lawsuit, filed in October 2020, accused Google of using monopoly power to stifle competition in internet searches. Google is also facing three other antitrust lawsuits from state attorneys general, including one focused on its advertising business.

Google was coming for everyone, not just Microsoft. The company accused Oracle of harming its customers with its practices. “With overly complex agreements that seek to lock in clients to their ecosystems,” Google said, such companies “are not only forcing customers toward a monolithic cloud model but also limiting choice, increasing costs for customers, and disrupting growing and thriving digital ecosystems in the U.S. and around the world.”

These accusations against Microsoft regarding anti-competitive practices in its Azure cloud unit underscore the intense competition and ongoing concerns surrounding monopolistic behavior in the tech industry. As these allegations are brought to the attention of the Federal Trade Commission, the outcome of this case could have significant implications for the cloud computing market and the overall landscape of digital ecosystems.

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