According to the Information, Google has lodged a complaint against longtime rival Microsoft, accusing the tech giant of engaging in anti-competitive behaviour in the cloud-computing market. The complaint was conveyed through a letter addressed to the Federal Trade Commission (FTC), which had sought public input on potential anti-competitive acts within the cloud industry.
Google’s allegations centre around Microsoft’s utilisation of unfair licensing terms to effectively “lock in clients” and exert control over the market. This is after Europe’s antitrust authority probing Microsoft’s licence agreement for discouraging rival cloud usage.
According to Google, Microsoft’s dominant products, Windows Server and Microsoft Office, make it challenging for businesses to utilise anything other than Microsoft’s Azure cloud infrastructure offering. The search giant argues that Microsoft’s licensing restrictions create a complex web that hinders enterprises from diversifying their software vendors.
In its letter to the FTC, Google additionally raised concerns about Oracle’s practices, claiming that the company’s overly complex agreements aim to lock in clients and limit choice, thereby increasing costs and disrupting digital ecosystems.
Moreover, NetChoice made a public comment on aiming at Microsoft and Oracle. “Despite vibrant competition in the cloud industry, a few vendors use anticompetitive practices in order to entrench their position, most often by preventing customers from switching providers in search of lower costs, stronger service offerings, and more innovative solutions for their businesses,” said NetChoice.
Google contends that such control poses significant risks in terms of national security and cybersecurity, citing previous cyberattacks involving Microsoft products, including the SolarWinds breach. Both Google and Microsoft maintain active cybersecurity practices aimed at addressing and researching cyber threats.
This is not the first time Google has faced antitrust concerns. In January, the U.S. Department of Justice filed its second antitrust lawsuit against Google within a span of two years, focusing on its advertising business. A separate lawsuit initiated by multiple state attorneys general, led by Texas Attorney General Ken Paxton, also targets Google’s advertising practices.
This latest clash between Google and Microsoft brings to mind Microsoft’s involvement in a landmark antitrust case in the 1990s. The company was accused of exploiting its dominance in desktop software to favour its own internet browser, stifling competition from other players like Netscape. Ultimately, the government succeeded in the case, compelling Microsoft to allow PC manufacturers to install alternative browsers alongside its own.
