Google vs. Microsoft: Allegations of unfair practices in Azure cloud services

After fighting allegations of monopolistic behavior in the United States and Europe for years, Google is finally speaking out against Microsoft’s anti-competitive practices. Google said in a letter to the FTC on Wednesday that Microsoft used deceptive licensing practices to “lock customers in” and dominate the cloud computing business. The FTC had sought feedback on a wide range of potentially anti-competitive cloud sector practices, and the letter was written in response to that call. The FTC representative was unwilling to elaborate.

According to Google’s complaint, Microsoft’s monopoly on the server and office software markets makes it difficult for Google’s vast customer base to switch to a cloud infrastructure provider other than Microsoft’s own Azure. According to Google, the licensing restrictions imposed by Microsoft are a “complex web” that prevent enterprises from changing enterprise software providers. Google said that this type of centralized authority poses serious cyber security and national security risks. It also brought to light the SolarWinds hack, among other intrusions against Microsoft products. The cyber security teams at both Microsoft and Google are constantly working to detect and investigate online threats.

Google has a history of facing antitrust investigations. The US Department of Justice (DOJ) sued Google again in January for antitrust violations in its advertising business, for the second time in less than two years. The government sued Google in October 2020 during the Trump administration, alleging that the company was abusing its dominant position in the search engine market by engaging in anti-competitive exclusion agreements. The hearing in that case should begin in September. Texas AG Ken Paxton is leading one of three other state AG antitrust charges against Google, all focused on the company’s advertising business. Google’s letter to the FTC reiterated similar claims about harm to consumers from Oracle’s practices.

One of the most infamous antitrust trials in US history occurred in the 1990s and involved Microsoft. It was claimed that the company used its desktop software monopoly to force users to switch to its browser, thereby eliminating a major threat to its business model posed by upstarts such as Netscape. After the government won the case, Microsoft agreed to let PC makers use browsers from competing companies.

After fighting allegations of monopolistic behavior in the United States and Europe for years, Google is finally speaking out against Microsoft’s anti-competitive practices. Google said in a letter to the FTC on Wednesday that Microsoft used deceptive licensing practices to “lock customers in” and dominate the cloud computing business. The FTC had sought feedback on a wide range of potentially anti-competitive cloud sector practices, and the letter was written in response to that call. The FTC representative was unwilling to elaborate.

According to Google’s complaint, Microsoft’s monopoly on the server and office software markets makes it difficult for Google’s vast customer base to switch to a cloud infrastructure provider other than Microsoft’s own Azure. According to Google, the licensing restrictions imposed by Microsoft are a “complex web” that prevent enterprises from changing enterprise software providers. Google said that this type of centralized authority poses serious cyber security and national security risks. It also brought to light the SolarWinds hack, among other intrusions against Microsoft products. The cyber security teams at both Microsoft and Google are constantly working to detect and investigate online threats.

Google has a history of facing antitrust investigations. The US Department of Justice (DOJ) sued Google again in January for antitrust violations in its advertising business, for the second time in less than two years. The government sued Google in October 2020 during the Trump administration, alleging that the company was abusing its dominant position in the search engine market by engaging in anti-competitive exclusion agreements. The hearing in that case should begin in September. Texas AG Ken Paxton is leading one of three other state AG antitrust charges against Google, all focused on the company’s advertising business. Google’s letter to the FTC reiterated similar claims about harm to consumers from Oracle’s practices.

One of the most infamous antitrust trials in US history occurred in the 1990s and involved Microsoft. It was claimed that the company used its desktop software monopoly to force users to switch to its browser, thereby eliminating a major threat to its business model posed by upstarts such as Netscape. After the government won the case, Microsoft agreed to let PC makers use browsers from competing companies.