Google Flags Microsoft's Cloud Practices As Anti-Competitive

  • Alphabet Inc's GOOG GOOGL Google Cloud slammed Microsoft Corp MSFT for anti-competitive cloud computing practices.
  • Google Cloud also criticized Microsoft's imminent deals with European cloud vendors, saying these do not solve broader concerns about its licensing terms.
  • Google Cloud Vice President Amit Zavery told Reuters the company had raised the issue with antitrust agencies and urged European Union antitrust regulators to take a closer look.
  • Microsoft reiterated its May blog post where its president Brad Smith mentioned its number two position in cloud services, with just over 20% market share of global cloud services revenues.
  • There is intense rivalry between the two U.S. tech giants in the multi-billion-dollar cloud computing business, where Google trails market leader Amazon.com Inc AMZN and Microsoft.
  • Reportedly, Microsoft has offered to change its cloud computing practices in a deal with smaller rivals and stave off an EU investigation.
  • Microsoft is leveraging a lot of its dominance in the on-premise business as well as Office 365 and Windows to tie Azure and the rest of cloud services and make it hard for customers to have a choice, Zavery said in an interview late on Wednesday.
  • Microsoft's bundling practices, pricing, and licensing restrictions are making it difficult for customers to choose other providers, Zavery said.
  • Zavery said individual deals struck with several smaller European cloud vendors only benefit Microsoft.
  • Zavery emphasized that it was a broader issue with the cloud beyond Google and therefore sought a holistic solution from the regulators.
  • Zavery urged an open, flexible way to deploy software and give customers more choices.
  • Price Action: MSFT shares traded higher by 0.21% at $281.11 premarket on the last check Thursday.
  • Photo by Rainer Stropek via Flickr
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