Google accuses Microsoft of cloud monopoly in EU complaint

Alphabet's Google (GOOG, GOOGL) has filed a complaint with the European Commission against Microsoft (MSFT), accusing the software giant of using anti-competitive practices to attract customers to its Azure cloud platform. Adam Kovacevich, founder and CEO of the Chamber of Progress, speaks in the Morning Brief about the growing tensions within Big Tech companies.

Kovacevich points out that Google is expanding into cloud computing and wants to compete with industry leaders such as Amazon (AMZN) and Microsoft. He explains that Google's focus on Microsoft is due to contract terms that “lock in customers and make it difficult for competitors to gain a foothold.” However, he points out that this is “not a new problem” for Microsoft, nor is it the first time such concerns have been raised in the EU.

“This is a cold war that has turned hot between Google and Microsoft,” Kovacevich told Yahoo Finance, noting that Microsoft has taken similar action against Google in the U.S. He added: “I think one of the things you're seeing here is Google hitting back and saying, 'Look, Microsoft's contracts bind cloud customers in the same way.'”

However, cloud computing is not subject to the same regulatory standards as other technology areas. “This will be an interesting test of whether the antitrust authorities will feel compelled to roll up their sleeves and take a closer look at the cloud computing market, which they have not done so far,” explains Kovacevich.

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This article was written by Angel Smith