Exclusive-Google pushes for antitrust action against Microsoft in UK cloud market By Reuters – Canada Boosts

By Martin Coulter

LONDON (Reuters) -Google has known as on Britain’s antitrust regulator to take motion in opposition to Microsoft (NASDAQ:), claiming its enterprise practices had left rivals at a big drawback, based on a letter seen by Reuters.

Microsoft and Amazon (NASDAQ:) have confronted mounting scrutiny world wide over their dominance of the cloud computing trade, with regulators in Britain, the European Union, and the U.S. probing their market energy.

The CMA (Competitors and Markets Authority) launched an investigation into Britain’s cloud computing trade in October, following a referral from media regulator Ofcom which highlighted Amazon and Microsoft’s dominance of the market.

In 2022, Amazon Net Providers (AWS) and Microsoft’s Azure had a mixed 70-80% share of Britain’s public cloud infrastructure companies market, Ofcom stated. Google’s cloud division was their closest competitor, at round 5-10%.

In a letter submitted to the CMA, Google (NASDAQ:) stated Microsoft’s licensing practices unfairly discouraged prospects from utilizing competitor companies, whilst a secondary supplier alongside Azure.

“With Microsoft’s licensing restrictions in particular, UK 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 stated in its letter to the CMA.

Such practices instantly harmed prospects, and have been the one vital barrier to competitors in Britain’s cloud computing market, the corporate stated.

Microsoft final yr up to date its licensing guidelines to handle such considerations and promote competitors, although the modifications didn’t fulfill rivals.

A Microsoft spokesperson stated the corporate had labored with unbiased cloud suppliers to handle considerations and supply alternative and that greater than 100 worldwide had taken benefit of the modifications.

“As the latest independent data shows, competition between cloud hyperscalers remains healthy. In the second quarter of 2023 Microsoft and Google made equally small gains on AWS, which continues to remain the global market leader by a significant margin,” the Microsoft spokesperson stated.

Talking to Reuters, Google Cloud Vice President Amit Zavery criticised Microsoft’s practices, and stated his firm was dedicated to a multi-cloud strategy, by which prospects may simply transfer between suppliers relying on their wants.

“A lot of our software and cloud services interoperate, and can run on AWS or on Azure as well, so you’re not restricted,” he stated. “If you don’t fix this, eventually you will have fewer cloud providers, and then innovation will not really happen, and investments will start shrinking.”

At subject was Microsoft’s choice to replace the phrases for when prospects needed to make use of their Home windows or different software program licenses within the cloud, successfully leading to larger prices in the event that they used Google or AWS as an alternative of Microsoft’s Azure.

Requested why Amazon, which boasts a bigger share of the cloud market than Microsoft, didn’t pose a equally anticompetitive threat, Zavery stated AWS shoppers weren’t going through the identical restrictions.

“There are some issues, in terms of cloud interoperability, but we can fix that. That’s a discussion between providers, which is much understood, and customers are forcing that conversation,” he stated.

“The problem we run into with Microsoft is that there’s no technical issue, but you have licensing restrictions which means we are now being prevented from competing.”  

Google made six suggestions to the CMA, together with forcing Microsoft to enhance interoperability for purchasers utilizing Azure and alongside different cloud companies, and banning it from withholding safety updates from those who swap.

The CMA didn’t instantly reply to a request for remark.