In a recent development, Google has made a daring move by asking Britain’s antitrust agency to examine Microsoft’s business methods, claiming that they unjustly disadvantage competitors. This action intensifies the attention that Microsoft and Amazon are under on a worldwide scale for their dominance in the cloud computing sector. Google has issued a call to action as the Competition and Markets Authority (CMA) in the United Kingdom looks into the cloud computing sector, with a focus on the dominance of Amazon and Microsoft.
In 2022, Google’s cloud division trailed at about 5–10% of the UK public cloud infrastructure services market, while Amazon Web Services (AWS) and Microsoft’s Azure retained a combined 70–80% share.
Google noted in a letter to the CMA that Microsoft’s licensing policies deterred users from adopting other services, which significantly reduced competition in the UK cloud computing industry.
Google underlined that these actions restrict consumers’ options for selecting cloud service providers and cause real downsides for them.
One major area of disagreement was Microsoft’s move to change the terms of software licensing in the cloud, which led to increased fees for users who chose Google or AWS over Azure. Vice President of Google Cloud Amit Zavery attacked Microsoft’s methods, saying that Google is dedicated to a multi-cloud strategy that lets users choose between providers following their requirements.
Google made six recommendations to the CMA, including improving interoperability for customers using Azure alongside other cloud services and preventing Microsoft from withholding security updates for those switching providers. This development underscores the ongoing battle for dominance in the UK cloud market and the potential regulatory implications for major players in the industry.
The CMA’s response to these recommendations is awaited.