In a move that underscores the intense competition in the cloud computing industry, Google is calling on Britain’s anti-trust regulator, the Competition and Markets Authority (CMA), to take action against Microsoft, according to a letter seen by Reuters.
Google alleges that Microsoft’s practices have placed competitors at a significant disadvantage.
Amazon and Microsoft, the two main players in the cloud computing sector, make up a combined market share of about 80% according to a market study done by Ofcom. Google is the closest competitor with a market share of about 10%. Regulatory bodies in the UK, EU, and US have initiated probes into their market power.
Google’s letter to the CMA contends that Microsoft’s licensing practices create an unfair advantage, discouraging customers from using competitor services, even as secondary providers alongside Azure.
According to Reuters, the letter states, “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 argues that these practices directly harm customers and serve as the primary barrier to competition in Britain’s cloud computing market.
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Google has submitted six recommendations to the CMA, including forcing Microsoft to improve interoperability for customers using Azure alongside other cloud services and prohibiting it from withholding security updates from those that switch.
“A lot of our software and cloud services interoperate, and can run on AWS or on Azure as well, so you’re not restricted,” said Google Cloud vice president Amit Zavery in an interview with Reuters. Zavery warned that failure to address the alleged anticompetitive practices could lead to fewer cloud providers, stifling innovation and shrinking investments.





