Google Cloud urges regulatory intervention in response to Microsoft’s Cloud practices

In a recent development, Google Cloud has intensified its criticism of Microsoft’s cloud computing practices, expressing concerns about the potential establishment of a monopoly that could hinder the growth of emerging technologies like generative artificial intelligence (AI).

The ongoing investigation of Microsoft and Amazon’s market power in cloud computing by authorities in Britain, the European Union, and the United States has brought the competition under the spotlight. Google Cloud is urging antitrust regulators to intervene and prevent what it perceives as an attempt by Microsoft to create a closed ecosystem in the cloud.

Microsoft’s alleged monopoly tactics

Google Cloud’s Vice President, Amit Zavery, pointed out Microsoft’s historical dominance in on-premise software and voiced worries about the company replicating a similar monopoly in the cloud space. Zavery expressed concerns that Microsoft is building a ‘walled garden’ where customers are pushed to use Microsoft’s Azure cloud platform exclusively. He emphasised the potential long-term issues, especially in next-generation technologies, if Microsoft’s cloud remains closed and monopolistic.

Amit Zavery urged antitrust regulators to provide guidance and potentially enact regulations to prevent what Google Cloud sees as Microsoft’s monopolistic practices. He highlighted the importance of keeping the cloud space open to foster healthy competition and innovation.

Microsoft’s response

Microsoft quickly denied Google Cloud’s accusations emphasising that, ‘As the latest independent data shows, competition between cloud hyperscalers remains healthy’.

Critique of Microsoft’s agreements with cloud vendors

Zavery also criticised Microsoft’s individual agreements with cloud vendors, stating that these agreements do not address broader issues. According to him,  ‘Microsoft has been very smart, picking individual vendors who complain and do one-side deals but they don’t solve the broader problem. So they can choose the winners and losers in many case as well, so they kind of pick who they want to compete with. ‘

Microsoft’s defense

In response to this critique, Microsoft asserted that it works constructively with independent cloud providers to address their concerns and adjust licensing terms. The company claimed that over 100 cloud providers worldwide have taken advantage of these changes, showcasing its commitment to fostering a competitive environment in the cloud space.