FTC to launch investigation into Microsoft’s cloud business

The FTC additionally highlighted charges charged on customers transferring information out of sure cloud methods and minimal spend contracts, which supply reductions to firms in return for a set stage of spending.

Microsoft has additionally attracted scrutiny from worldwide regulators over related issues. The UK’s Competitors and Markets Authority is investigating Microsoft and Amazon after its fellow watchdog Ofcom discovered that prospects complained about being “locked in” to a single supplier, which provides reductions for exclusivity and cost excessive “egress charges” to go away.

Within the EU, Microsoft has prevented a proper probe into its cloud enterprise after agreeing to a multimillion-dollar take care of a bunch of rival cloud suppliers in July.

The FTC in 2022 sued to dam Microsoft’s $75 billion acquisition of online game maker Activision Blizzard over issues the deal would hurt opponents to its Xbox consoles and cloud-gaming enterprise. A federal court docket shot down an try by the FTC to dam it, which is being appealed. A revised model of the deal within the meantime closed final 12 months following its clearance by the UK’s CMA.

Since its inception 20 years in the past, cloud infrastructure and companies has grown to turn into one of the vital profitable enterprise traces for Large Tech as firms outsource their information storage and computing on-line. Extra just lately, this has been turbocharged by demand for processing energy to coach and run synthetic intelligence fashions.

Spending on cloud companies soared to $561 billion in 2023 with market researcher Gartner forecasting it’ll develop to $675 billion this 12 months and $825 billion in 2025. Microsoft has a few 20 p.c market share over the worldwide cloud market, trailing chief Amazon Internet Companies that has 31 p.c, however nearly double the scale of Google Cloud at 12 p.c.

There may be fierce rivalry between the trio and smaller suppliers. Final month, Microsoft accused Google of working “shadow campaigns” looking for to undermine its place with regulators by secretly bankrolling hostile lobbying teams.

Microsoft additionally alleged that Google tried to derail its settlement with EU cloud suppliers by providing them $500 million in money and credit score to reject its deal and proceed pursuing litigation.

The FTC and Microsoft declined to remark.

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