Google accuses Microsoft of anticompetitive cloud practices
Alphabet's Google has formally filed a complaint to the U.S. Federal Trade Commission (FTC) accusing Microsoft of anticompetitive cloud practices. The complaint alleges that Microsoft is using its dominant position in enterprise software to push customers towards its cloud services, Azure.
Specifically, Google claims that Microsoft is using the licensing terms in its Office 365 productivity software to lock customers into separate contracts with Azure. For example, Google says that Microsoft requires customers who want to use Office 365 on-premises to also use Azure for hosting. This, Google argues, gives Microsoft an unfair advantage in the cloud market.
Google also alleges that Microsoft is using its market power to make it difficult for other cloud providers to compete. For example, Google says that Microsoft has made it difficult for customers to migrate their data from Azure to other cloud providers.
"Microsoft's anticompetitive cloud practices are harming competition and innovation," said Amit Zavery, Vice President of Google Cloud. "We are filing this complaint to ensure that the FTC takes action to protect consumers and businesses from Microsoft's unfair practices."
Microsoft has denied the allegations, calling them "baseless." The company said that its licensing terms are "fair and transparent" and that it does not require customers to use Azure.
"We compete vigorously in the cloud market, and we do so fairly," said Frank Shaw, a Microsoft spokesperson. "We are confident that the FTC will find that our business practices are in compliance with the law."
The FTC is still investigating the complaint, and it is not clear when it will issue a decision. However, the complaint has the potential to have a significant impact on the cloud market. If the FTC finds that Microsoft is violating antitrust laws, it could force the company to change its business practices. This could open up the market to more competition and give consumers more choices.
The complaint is the latest in a series of legal challenges facing Microsoft. In recent years, the company has been accused of anticompetitive practices in a number of different markets, including the operating system market and the search market. The FTC has already opened investigations into some of these allegations, and it is possible that the company could face further legal action.
The cloud market is growing rapidly, and it is becoming increasingly important to businesses of all sizes. As the market grows, it is likely that we will see more competition and innovation. However, it is also possible that we will see more antitrust challenges, as companies try to protect their market share.