Response: Brad Smith of Microsoft
Google yesterday called on competition watchdogs to take action against Microsoft over its dominance in cloud computing.
The US tech giant has written to the Competition Markets Authority (CMA) complaining about its rival's licensing practices, which it says unfairly discourages customers from using competitors' services.
“With Microsoft's licensing restrictions, UK customers have no alternative but to use this cloud services provider,” Google said in a letter to the CMA.
Microsoft has come under pressure on both sides of the Atlantic for its dominance in cloud technology.
Cloud computing involves delivering services such as data storage and software over the Internet, allowing users to access services remotely.
The CMA launched an investigation into the UK cloud computing industry in October, following a referral from media regulator Ofcom, which raised concerns about Microsoft – as well as Amazon – and their dominance. Last year, Amazon Web Services and Microsoft together had an 80 percent share of the cloud market, according to figures from Ofcom.
A Microsoft spokesperson said it had addressed competition concerns and updated its licensing rules.
“Competition between cloud players remains healthy,” the spokesperson said. The CMA declined to comment on the reports.
But Google's letter to the CMA comes less than two months after Microsoft finally got the green light to acquire Call Of Duty maker Activision Blizzard.
The CMA had initially blocked the £53 billion deal in April over concerns about the impact it could have on the gaming market.
The move prompted a dramatic response from Microsoft, whose president Brad Smith branded it “bad for Britain.” He said at the time: 'The European Union is a more attractive place to start a business. The English Channel has never seemed wider.”
He also criticized the 'unelected' and 'irresponsible' supervisor. After several concessions from Microsoft, the watchdog finally agreed to the cooperation in the field of gaming in October. But CMA CEO Sarah Cardell still slammed the company for its approach. She said: 'We make our decisions without political influence and are not influenced by corporate lobbying.'