Amazon Joins Google’s War Against Microsoft’s Unethical Cloud Computing

Cloud computing has dismantled the traditional constraints of business operations, ushering in an era of unparalleled agility and scalability. However, as more and more companies shift their services to the cloud, the top tech giants offering these services have been at war with each other over ethical considerations.

Recently, Amazon and Google slammed Microsoft’s cloud computing practices – saying its rival is seeking a monopoly that would harm the development of emerging technologies such as genAI and machine learning.

In their written submissions to Britain’s Competition and Markets Authority (CMA), the two companies accused their fellow technology giant of using its software dominance to strangle cloud development – and urge regulators to intervene.

Claims of monopoly struck down by Microsoft rep

In a legal war, oftentimes it’s best to let words speak for themselves. First, we’ll note two of the major complaints filed in the CMA submission, then follow with Microsoft’s retort.

“To use many of Microsoft’s software products with other cloud service providers, a customer must purchase a separate license even if they already own the software. This often makes it financially unviable for a customer to choose a provider other than Microsof,” Amazon Web Services claimed.

Google also submitted a similar letter regarding Microsoft’s business practices.

“With Microsoft’s licensing restrictions in particular, customers are left with no economically reasonable alternative but to use Azure as their cloud services provider, even if they prefer the prices, quality, security, innovations, and features of rivals,”Google said.

In return Microsoft told CMA in its own submission that “Britain’s cloud computing market remained competitive. There are many sources of competition in the UK cloud market. Google, Oracle, IBM, and many other cloud players are also investing billions of pounds in cloud infrastructure globally to satisfy demand, and we are competing strongly for each customer workload where they operate.”

Action taken by Competition and Markets Authority (CMA)

The CMA’s independent inquiry group is now investigating whether the competition in this market is working well and, if not, what action should be taken to address any issues it finds.

The CMA will soon set out the scope of its probe and is expected to complete it, including potential remedies if it finds anti-competitive practices in the cloud market, by April 2025.

“The CMA investigation can be a turning point for the customers. We can start building an environment where any company can develop cutting-edge cloud services, and customers have the freedom to find the best solution for them,” according to Civo chief executive Mark Boost,

If we want to truly build a better cloud space, we need to focus on addressing the issues that are key to customers. Predictable pricing, simplified services, and ease of access can all contribute to a more competitive landscape where cloud realizes its full potential.

Heightened rivalries

While it’s not entirely unusual for the world’s most powerful tech companies to butt heads on certain issues, watching their relations slide into a public mud-slinging match is significantly rarer, especially in a field that prides itself on trying to appeal to as many people as humanly possible.

Nevertheless, the competition and rivalry between big tech firms is driving innovation and leading us into the future of new possibilities. By constantly pushing the boundaries, these companies will create a better future for all of us. As we continue to see new products and services emerge from this rivalry, there’s no telling what exciting developments lie ahead.

In brief

As tech giants invest in cloud computing, the race to domination heats up. Google and Amazon are taking a firm stance against unethical cloud computing business practices – urging regulators to intervene.