Google Cloud has accused Microsoft of anti-competitive cloud practices, and criticized Microsoft’s impending deals with European cloud providers, saying they don’t address broader concerns about Microsoft’s licensing terms. Google Cloud has asked EU antitrust regulators to investigate the issue further.
Fierce competition in the cloud market
Google Cloud’s public indictment of Microsoft, published in Reuters, and its deals with European cloud providers underscores the rivalry between the two US tech giants in the multi-billion dollar cloud business. Amazon leads the market, followed by Microsoft, while Google lags behind.
Google Cloud accuses Microsoft of leveraging its dominance in the on-premises services market, as well as Office 365 and Windows, to tie Azure and other cloud services together, and make it difficult for customers to choose other providers. Amit Zavery, vice president of Google Cloud, says that “when we talk to many of our customers, they find that many of these bundling practices, as well as the way they create pricing and licensing restrictions, make it difficult for them to choose other providers.”
Criticism of Microsoft’s agreements with European cloud providers
Zavery has criticized Microsoft’s agreements with European cloud providers, as these agreements do not address broader concerns about Microsoft’s license terms. As reported by Reuters, Microsoft has offered to change its cloud practices in a deal with smaller providers, which will in turn drop its antitrust complaints and avoid an EU investigation.
Zavery has pointed out that these agreements do not solve the fundamental problem that Microsoft has anti-competitive practices in the cloud, and has urged the EU to investigate the matter further. “It is important that practices conform to what is expected of a fair market,” she assured.
The importance of fair competition in the cloud
Google Cloud’s public indictment of Microsoft underscores the importance of fair competition in the cloud market. The cloud is an essential component of the digital economy, and fair competition in the cloud market is important to ensure that customers have choice and that cloud providers continue to innovate.
It’s funny, because now Google is accusing others while others are accusing him in the world of web search.
