Google Calls Antitrust Regulator to Act Against Microsoft

Google has taken a decisive step by urging the UK's antitrust regulator to initiate action against Microsoft.This addresses concerns over the tech giant's alleged anticompetitive practices in the country's cloud market.

This exclusive information, obtained by reliable sources, reveals Google's push for antitrust measures to tackle what it perceives as unfair business practices by Microsoft.

Clash Between Google and Microsoft

According to a letter seen by Reuters, Google is urging Britain's Competition and Markets Authority (CMA) to intervene.The company claims that Microsoft's business strategies have placed its competitors, particularly Google's cloud division, at a substantial disadvantage.

In the letter to the CMA, Google also specifically highlighted Microsoft's licensing practices, alleging that they unfairly discouraged customers from considering alternative services, even when used alongside Azure.

Google argued that such licensing restrictions left customers with no economically viable choice but to opt for Azure, irrespective of their preferences for rival services. The move comes amid heightened global scrutiny on major players like Microsoft and Amazon for their dominance in the cloud computing industry.

Notably, the CMA had previously launched an investigation into the UK's cloud computing sector in October, following a referral from media regulator Ofcom.

Ofcom's concerns centered around the dominating market shares held by Amazon Web Services (AWS) and Microsoft's Azure, which collectively commanded 70-80% of the country's public cloud infrastructure services market in 2022.

Meanwhile, Google's cloud division was identified as the closest competitor, with a market share ranging from 5-10%. Microsoft, in response, had updated its licensing rules in the past year to address concerns and promote competition. However, Google and other rivals remain dissatisfied with the changes.

Solving the Issues

A Microsoft spokesperson countered the allegations, stating that the company had actively collaborated with independent cloud providers to address concerns. The spokesperson emphasized the healthy competition among cloud hyperscalers and cited data indicating Microsoft and Google are making small gains on AWS in the second quarter of 2023.

Google Cloud Vice President Amit Zavery, in a statement to Reuters, criticized Microsoft's practices and reiterated Google's commitment to a multi-cloud approach.Zavery also expressed concerns about Microsoft's decisions impacting costs for users choosing Google or AWS over Azure.

But on the bright side, he stated that many of Google's software and cloud services are designed to interoperate and can run seamlessly on AWS or Azure, providing users with flexibility and choice.

He highlighted that users are not restricted to a single cloud provider, promoting a multi-cloud approach.

Notably, a similar case was recorded between both parties in April 2021. At the time, Google and Microsoft found themselves in disagreement after their five-year non-aggression pact came to an end.

This expiration resulted in public grievances between the tech giants.

The disagreements covered a range of issues, including a proposition to make Google compensate news publishers for their content. Added to that were disputes on technology and licensing approaches.

Even though the present circumstances may not directly mirror those of 2021, it's evident that there's still a considerable amount of unresolved matters among the tech giants.

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