On the cloud market, Google does not hold back its blows against Microsoft. Last episode to date, Amit Zavery, one of the managers of Google Cloud, accused the Redmond firm of engaging in anti-competitive practices in the cloud market. He also criticizes the imminent agreements that Microsoft is about to enter into with several European cloud providers.
Since last year, Microsoft has been the subject of a complaint filed by several companies, including OVHcloud, with the EU Competition Supervisory Authority, for abuse of a dominant position. Faced with this threat, the American giant offered to modify its cloud business practices as part of an agreement with the plaintiffs, according to a source familiar with the matter quoted by Reuters. Such an agreement would be conditional on the withdrawal of the antitrust complaint, which would allow Microsoft to escape an EU investigation.
Google appeals to Brussels to win its case
However, such a scenario greatly irritates the leaders of Google Cloud. “Microsoft definitely has a very anti-competitive position in the cloud”, said Amit Zavery in an interview with Reuters. In its eyes, its rival enjoys a dominant position with its suite of office software, giving it an unrivaled advantage to crush the competition in the cloud. “When we talk to many of our customers, they find that these bundling practices [ndlr, le fait de regrouper plusieurs offres en une seule] as well as the way they create pricing and licensing restrictions that make it difficult for them to choose other providers”he explains to the press agency.
In this context, the leader of Google Cloud takes a very dim view of the maneuvers carried out behind the scenes by Microsoft to encourage the plaintiffs to drop their lawsuits with the European authorities. “Whatever they offer, there should be the same conditions for everyone, not just one or two suppliers chosen by them. It shows you how much power they have in the market”, he believes. Therefore, Amit Zavery urges the European authorities to look into the subject. “Regulators need to look at this problem holistically. A deal with one or two players won’t fix it”he adds.
Seeing Google asking Brussels to investigate its competitor is ironic when you know that the Mountain View firm is regularly targeted by European authorities for abuse of a dominant position in the advertising market. Above all, it says a lot about Google Cloud’s struggles to catch up with Amazon Web Services (AWS) and Microsoft, which hold 39% and 21% of the global cloud market, respectively, according to Gartner data. It now remains to be seen whether such remarks will be enough to push the EU to take a greater interest in Microsoft’s business practices in the cloud, and whether Brad Smith’s group will succeed in dismissing the lawsuits launched against it on the Old Continent.