Alphabet’s Google (GOOG, GOOGL) has filed a complaint with the European Commission against Microsoft (MSFT), accusing the software giant of using anticompetitive practices to attract customers to its Azure cloud platform. Adam Kovacevich, Founder & CEO of Chamber of Progress, joins Morning Brief to discuss the growing tension within Big Tech.
Kovacevich notes that Google is expanding in the cloud computing space, aiming to compete with industry leaders like Amazon (AMZN) and Microsoft. He explains that Google’s focus on Microsoft stems from contractual terms that “lock in customers and make it difficult for competitors to gain traction.” However, he points out that this is “not a new issue” for Microsoft, nor is it the first time such concerns have been raised in the EU.
“This is a cold war that’s gone hot between Google and Microsoft,” Kovacevich told Yahoo Finance, noting that Microsoft has taken similar action against Google in the United States. He adds, “I think one of the things you see here is Google punching back and saying ‘look, Microsoft’s contracts lock in cloud customers in the same way.'”
However, cloud computing does not have the same regulatory standards as other tech areas. “This will be an interesting test of whether antitrust enforcers feel inclined to roll up their sleeves and take a closer look at the cloud computing market, which they haven’t done to date,” Kovacevich states.
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This post was written by Angel Smith