Microsoft uses unfair terms
Google has alleged that in order to lock in clients, Microsoft has used unfair licensing terms to gain more control in the cloud computing market. Google argued in the letter that Microsoft’s Office products and Windows Server make it extremely difficult for clients to use Azure cloud only. Google said that Microsoft has licensing restrictions, which make it difficult for clients to explore other enterprise software options.
Further, it said that Microsoft had seen a lot of cyberattacks on is products and services. As per Google, with Microsoft having so much control, it could lead to national security and cybersecurity risk.
Google also took aim at Oracle. “With overly complex agreements that seek to lock in clients to their ecosystems,” Google said, companies such as Microsoft and Oracle “are not only forcing customers toward a monolithic cloud model but also limiting choice, increasing costs for customers, and disrupting growing and thriving digital ecosystems in the U.S. and around the world,” according to the CNBC report.
It is rather ironic as Google has been accused of following the same unfair practices by many countries, including the US. In 2020, Google was accused by the US administration of using its monopoly to thwart competition by having exclusionary agreements in place.
So far, neither Microsoft nor Oracle has responded to the letter Google has written. The letter was written after the Federal Trade Commission staff sought information on the business practices of cloud computing providers including issues related to the market power of these companies, impact on competition, and potential security risks.
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