Google, a subsidiary of Alphabet, has sued Microsoft with the US Federal Trade Commission (FTC) for leveraging its business software monopoly to force consumers onto its cloud services.
According to a report by The Information cited by Reuters, Google asserts that Microsoft utilized license clauses in its Office 365 productivity software to tie consumers to separate contracts with its Azure cloud services company.
Google complains that Microsoft's stranglehold over Windows Server and Microsoft Office products makes it difficult for customers to choose any cloud infrastructure other than Microsoft's Azure. Google claims that such limitations create a "complex web" that prevents companies from diversifying their enterprise software providers.
The multinational tech company also points to Microsoft's past hacks, such as the SolarWinds compromise, as a national security and cybersecurity issue. Google and Microsoft both actively practice cybersecurity to thwart and examine online dangers.
Due to the dominance of a small number of significant firms and the expanding significance of cloud services for enterprises, the cloud computing industry has lately come under heightened regulatory scrutiny in the United States and Great Britain, according to a report published by CNA.
The FTC said earlier this year that it would seek public input on business practices of cloud computing businesses, concentrating on elements including market strength, rivalry, and possible security concerns.
Rundown of The Legal Issues of The Two Rival Tech Giants
Google has been in antitrust trouble before. The Justice Department sued Google for antitrust violations in January, concentrating on the company's advertising division. In October 2020, Google was sued for using exclusionary agreements to limit internet search competition, per CNBC. September is the tentative date for the case's future trial.
The technology firm is also being sued by three state attorneys general for antitrust violations, including one by Texas Attorney General Ken Paxton that targets its advertising business.
In March, Google Cloud accused Microsoft of using anti-competitive cloud computing tactics. The tech firm also questioned Microsoft's upcoming contracts with many European cloud suppliers, claiming that these contracts need to address more general issues with license conditions.
Microsoft has a history of being involved in antitrust actions, most notably in the 1990s, when it was subjected to one of the most well-known antitrust lawsuits in American history. The business was accused of using its desktop software supremacy to push its internet browser, which killed Netscape. The US government won the lawsuit, forcing Microsoft to let PC makers use alternative browsers.
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