Alphabet’s Google along with technology trade groups have griped to the Federal Trade Commission about allegedly unfair business practices in the cloud, including by the industry’s number two by market share Microsoft, according to a report published by Reuters.
On Wednesday, the comments responded to a March request from the US Agency for information on security issues and competition in the lucrative market for data storage and computing power in the so-called cloud.
They also follow scrutiny worldwide including a recent probe by Europe’s antitrust authority into Microsoft’s licensing agreements that allegedly discouraged viral cloud usage, the report said.
In addition, fees to take data out of various providers’ clouds have also drawn industry criticism. In one example of the public comments on Tuesday, trade group NetChoice took aim at Microsoft and Oracle.
NetChoice, whose members include market leader Amazon.com, Meta Platforms, Google and other smaller tech players said that a few vendors use anti-competitive practices in order to entrench their position, despite vibrant competition in the cloud industry, Reuters reported.
These practices include preventing customers from switching providers in search of lower costs, stronger service offerings, and more innovative solutions for their businesses, NetChoice said.
In its own filing, Google said, “Licensing terms enforced by Microsoft, Oracle, and other legacy on-premises software providers distort competition in the cloud.”
According to Google, businesses that bought software from Microsoft for their own data centers face restrictions and surcharges when migrating those licenses to Microsoft’s top cloud competitors.
The remarks came in line with comments it made previously. Amazon has made similar criticism, as per Reuters reports.
Microsoft and Oracle did not immediately return Reuters requests for comment. Microsoft has updated some terms in response to the criticism and has said, for instance, that it is committed to a broader cloud community success, but rivals have called its changes insufficient.
(With Reuters inputs)
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Updated: 22 Jun 2023, 06:52 AM IST