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Google wants regulators to take Microsoft down a notch before it stifles AI

Feb 28, 2024 - theregister.com
Google Cloud VP, Amit Zavery, has accused Microsoft of using anticompetitive business practices and licenses to establish a cloud monopoly. Zavery alleges that Microsoft is creating a "walled garden" that forces customers to use its Azure platform, thereby making it more expensive to deploy Microsoft's software on third-party clouds. He has called on regulators in the US, Europe, and UK to take action against Microsoft's alleged monopolistic practices.

Google, which holds a 7.5% global market share in the public cloud sector, has previously lodged numerous complaints against Microsoft. It has successfully prompted competition watchdogs in the US, UK, and EU to consider Microsoft's market power. However, Zavery's call for regulatory action could also open Google up to additional scrutiny.

Key takeaways:

  • Google has accused Microsoft of using anticompetitive business practices and licenses to establish a cloud monopoly, and is calling on regulators to take action.
  • Google Cloud VP Amit Zavery alleges that Microsoft is using many of the same tactics that helped it gain a dominant position in the on-prem software market to establish a similar monopoly in cloud applications.
  • Zavery's main issue with Microsoft is its licensing practices that either prevent or make it more expensive to deploy Microsoft's software platforms on third-party clouds, thereby creating an incentive to deploy on Azure.
  • Google and AWS have been successful in getting competition watchdogs in the US, UK, and EU to consider Microsoft's market power, leading to several antitrust investigations into Microsoft and other major cloud service providers.
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