Google Cloud Cautions Against Microsoft's Monopoly Move in Cloud Computing

Alphabet Inc’s GOOG GOOGL Google Cloud has intensified its critique of Microsoft Corp’s MSFT cloud computing strategies, voicing concerns that Microsoft is aiming for a monopoly in cloud computing, which could hinder the development of innovative technologies such as generative artificial intelligence. 

Amid growing scrutiny from regulatory bodies in Britain, the European Union, and the United States over the dominant market positions of Microsoft and Amazon.Com Inc AMZN in cloud computing, Google finds itself in a distant third place. 

The partnership between Microsoft and OpenAI, the creators of ChatGPT, has amplified these worries, Reuters reports.

Also Read: Amazon’s AWS Vs. Microsoft’s Azure Vs. Google Cloud: Which Company Won The Cloud Race In Q4?

Amit Zavery, Vice President of Google Cloud, expressed apprehension over Microsoft’s attempt to transfer its long-standing dominance in on-premise software to the cloud, creating a “walled garden” that forces customers to use Microsoft’s services exclusively. He called on antitrust regulators to intervene.

Microsoft, however, countered these claims by stating that competition in the cloud sector remains robust, with both Microsoft and Google making gains on Amazon Web Services (AWS), the current market leader.

Microsoft President Brad Smith subtly criticized Google, pointing out that only one company is fully integrated across all layers of AI technology, from hardware to mobile app stores.

In 2023, Amazon challenged Microsoft’s cloud practices to U.K.’s regulatory watchdog, alleging restrictive licensing terms. 

Google also joined Amazon in the complaint. Amazon’s AWS and Microsoft Azure collectively commanded 60% – 70% of the cloud expenditure.

Microsoft stock gained over 62% last year, while Google gained 54%.

Fidelity MSCI Information Technology Index ETF FTEC and SPDR Select Sector Fund – Technology XLK have over 21-22% exposure to Microsoft.

Price Action: MSFT shares closed lower by 0.01% at $407.48 on Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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