Technology trade groups criticise Microsoft and Oracle’s business practices in the cloud

Tech trade groups accuse Microsoft and Oracle of anticompetitive practices in the cloud, hindering customer flexibility. Scrutiny from European antitrust authority and industry criticism over data transfer fees have fueled the debate. Groups propose updated terms for provider switching, while companies defend their positions.
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Alphabet’s Google and technology trade groups have separately filed complaints with the US Federal Trade Commission, alleging unfair business practices in the cloud industry by Microsoft and Oracle. NetChoice, a trade group representing companies like Amazon.com, Meta Platforms, and Google, has accused the two companies of utilising anticompetitive tactics to solidify their market positions, restricting customer mobility and hindering their ability to switch providers for better pricing, enhanced services, and innovative solutions. These allegations collectively assert that Microsoft and Oracle engage in unfair business practices within the cloud industry.

In its individual filing, Google expressed concerns over Microsoft’s licensing agreements, which it believes discourage the adoption of rival cloud services. Google also highlighted the industry’s criticism of data extraction fees imposed by various cloud providers. Additionally, Google emphasised the restrictions and surcharges that businesses encounter when attempting to migrate their software licenses from Microsoft’s on-premises data centers to its top cloud competitors.

In response to these issues, technology trade groups have proposed that Microsoft and Oracle should update their terms to allow customers to switch providers in search of lower costs, stronger service offerings, and more innovative solutions for their businesses. In response to the criticism, Microsoft has made updates to certain terms. However, some competitors have deemed these changes insufficient.