Google Takes Legal Action Over Microsoft’s Cloud Policies
Google has lodged an antitrust complaint with the European Commission, accusing Microsoft of anticompetitive practices in its cloud licensing system. The tech giant is challenging Microsoft’s cloud platform, Azure, for allegedly restricting European customers from switching to alternative cloud services.
Allegations of Lock-In Tactics
Google argues that Microsoft locks customers into its platform by making the Windows server indispensable for many applications. This tactic, according to Google, involves financial penalties and technical barriers that discourage businesses from migrating to other cloud providers.
Call for Regulatory Intervention
Amit Zavery, head of Google Cloud, urged the European Commission to investigate Microsoft’s practices. Zavery emphasized the need to remove restrictions, allowing customers to have more choices and fostering a competitive environment where cloud providers can innovate and thrive.
Previous Antitrust Scrutiny on Microsoft
This isn’t the first time Microsoft has faced antitrust scrutiny in Europe. In 2022, the cloud infrastructure lobby group CISPE, backed by Amazon, filed a similar complaint regarding Microsoft’s contractual terms. That case was resolved in July with a €22 million settlement.
Cloud Market Competition Heats Up
The global cloud infrastructure market is fiercely competitive, dominated by three major players: Amazon Web Services (AWS), Microsoft, and Google. These companies are constantly vying for market share, with this latest dispute adding fuel to the ongoing battle between the tech giants.
Microsoft Faces Additional Antitrust Probes
Beyond the cloud market, Microsoft is also under investigation by the European Commission for its Teams collaboration product. If the company is found to be abusing its market dominance, it could face a hefty fine of up to 10% of its annual revenue.
Settlements With Other Cloud Providers
Microsoft has managed to settle similar disputes with other European cloud providers, though Google had hoped these companies would continue litigation. A Microsoft spokesperson expressed confidence that Google’s latest complaint would not succeed in persuading the European Commission to take further action.
Future Implications for Cloud Competition
As the European Commission investigates these allegations, the outcome could significantly impact the cloud services landscape. If Microsoft is forced to ease restrictions, it could open up more opportunities for cloud providers to compete and drive innovation in the market.
SOURCE: Ref Image from CNBC TV 18
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