Tech Companies Including Google Gripe About Unfair Cloud Practices

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Tech Companies Including Google Gripe About Unfair Cloud Practices

They also follow on the heels of worldwide investigations, including a recent investigation by Europe’s antitrust regulator into Microsoft’s licencing deals, which allegedly impeded rival cloud usage.

Technology trade groups and Alphabet’s Google have submitted complaints to the Federal Trade Commission over potentially unfair cloud business practises, notably by the industry’s No. 2 by market share, Microsoft.

The comments, due Wednesday, are in response to a March request from the US agency for information on security concerns and competition in the lucrative market for data storage and processing power in the so-called cloud.

They also come on the heels of global investigations, including a recent investigation by Europe’s antitrust regulator into Microsoft’s licencing deals, which allegedly impeded rival cloud usage. Fees for removing data from various providers’ clouds have also been criticised by the industry.

NetChoice, a trade group, took aim at Microsoft and Oracle in one of the public comments on Tuesday.

“Despite vibrant competition in the cloud industry, a few vendors use anticompetitive practises 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, whose members include market leader Amazon.com, Meta Platforms, Google, and other smaller tech players.

In its own filing, Google stated that “licencing terms enforced by Microsoft, Oracle, and other legacy on-premises software providers distort competition in the cloud.”

Businesses who purchased Microsoft software for their own servers, for example, suffer restrictions and costs when moving those licences to Microsoft’s top cloud competitors, Google said, echoing prior concerns. Amazon has made similar remarks.

Microsoft and Oracle did not respond to Reuters’ requests for comment right away. In response to the criticism, Microsoft has modified several conditions and stated, for example, that it is committed to the success of the larger cloud community, although competitors have termed its adjustments insufficient.

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