Google And Other Tech Companies Complain To The FTC Accusing Microsoft Of Unfair Business Practices

Google and other technology trade groups have jointly filed a complaint with the US Federal Trade Commission. The group has accused Microsoft of unfair business practices, especially in the thriving world of Cloud Computing and Remote Data Centers.

Cloud Computing and Cloud Data Storage are two of the fastest-growing and heavily in-demand sectors. Companies like Microsoft, Amazon, Google, and several others are well entrenched in the "Cloud". The complaint alleges Microsoft makes it unnecessarily harder for businesses to migrate for better prospects.

Google And Others File Complain Against Microsoft Alleging Anti-Competitive Behavior

Alphabet's Google, along with multiple technology trade groups, have complained to the Federal Trade Commission (FTC) about alleged unfair business practices in the cloud. The complaint includes multiple entities, but the biggest is Microsoft.

Microsoft is currently America's second-largest cloud service provider. The complaint alleges companies like Microsoft are charging fees for allowing data migration. Simply put, businesses that use cloud-based services, ask for fees to take data out of various providers' clouds.

The complaint follows increased scrutiny of prevalent business practices and their potential negative impact on healthy competition. Incidentally, Europe's antitrust authority has been probing into Microsoft's licensing agreements that allegedly discouraged viral cloud usage.

Microsoft Licensing Terms Discourage Competition And Lock-in Customers?

NetChoice, an organization whose members include Amazon Inc., Meta Platforms, Google, and several other smaller tech players, has alleged that a few cloud-service providers and vendors use anti-competitive practices.

The complaint observes that procuring cloud services is usually a long-term commitment. However, that does not mean businesses may not want to migrate or take their business and data elsewhere.

Several cloud service providers are using unfair means to entrench their position, despite vibrant competition in the cloud industry, notes the complaint. These practices include preventing customers from switching providers in search of lower costs, stronger service offerings, and more innovative solutions for their businesses, NetChoice alleged.

Google has categorically alleged that "Licensing terms enforced by Microsoft, Oracle, and other legacy on-premises software providers distort competition in the cloud."

Businesses that acquired software from Microsoft for their own data centers face restrictions and surcharges when migrating to the company's competitors. Simply put, if a business has bought a cloud-based software that's made by Microsoft, it cannot easily switch to another cloud service provider.

As Microsoft's recent attempts to close the acquisition deal involving Activision Blizzard have indicated, the company has been open to discussions and amendments in order to protect and promote competition. It is possible Microsoft, Oracle and others might adopt a competition-friendly approach due to this latest complaint.