Google, is not new to allegations of anti-competitive practices. The tech giant has now has now filed a complaint against its long-standing rival Microsoft accusing it of following anti-competitive practices. In a letter addressed to the Federal Trade Commission (FTC), Google claimed that Microsoft utilizes unfair licensing terms to create client dependencies and exert control over the cloud-computing market.

Google's letter was a response to a broader request for comment by the FTC on potential anti-competitive actions in the cloud industry. However, the FTC declined to provide further comment on the matter, reported CNBC.

In its complaint, Google specifically targeted Microsoft, asserting that the company's dominant Windows Server and Microsoft Office products make it challenging for clients to opt for anything other than Microsoft's Azure cloud infrastructure offering. Google characterized Microsoft's licensing restrictions as a "complex web" that hinders businesses from diversifying their enterprise software vendors.

Additionally, Google emphasized that such control poses significant risks to national security and cybersecurity. It pointed out previous cyberattacks involving Microsoft products, including the SolarWinds breach. Both Microsoft and Google have active cybersecurity practices that address and study cyber threats.

Antitrust concerns are not new to Google. In January, the U.S. Department of Justice filed its second antitrust lawsuit against the company, focusing on its advertising business. The previous lawsuit, filed in October 2020 during the Trump administration, accused Google of leveraging its monopoly power to stifle competition in internet search through exclusionary agreements. The trial for that case is expected to take place in September. Google is also facing three additional antitrust lawsuits from groups of state attorneys general, including one led by Texas Attorney General Ken Paxton, which focuses on its advertising business.

Also read: Google charged with anti-competitive practices in ad-tech business, faces EU breakup

In its letter to the FTC, Google also raised concerns about Oracle's practices, stating that the company's complex agreements aim to lock in clients to their ecosystems. Google argued that companies like Microsoft and Oracle not only push customers towards a monolithic cloud model but also limit choice, increase costs for customers, and disrupt digital ecosystems both in the U.S. and worldwide.

It is worth noting that Microsoft was involved in a prominent antitrust case in the 1990s. The company faced accusations of leveraging its dominance in desktop software to promote its internet browser and eliminate competition from competitors like Netscape. The case resulted in the government's victory and led to Microsoft being compelled to allow PC manufacturers to use other browsers from different companies.

First Published:Jun 22, 2023 10:19 AM IST