Google Raises Concerns Over Microsoft’s Cloud Computing Practices

On Monday, alphabet’s Google Cloud ramped up its criticism of Microsoft’s cloud computing practices, saying its rival is seeking a monopoly that would harm the development of emerging technologies such as generative artificial intelligence.

Microsoft and Amazon have recently attracted scrutiny in Britain, the European Union, and the United States over their market power in cloud computing. Google trails a distant third behind the two leaders.

Concerns Over Collaboration:

Microsoft’s collaboration with ChatGPT creator OpenAI has also ratcheted up the concerns.

“We worry about Microsoft wanting to flex their decade-long practices where they had a lot of monopoly on the on-premise software before, and now they are trying to push that into the cloud now,” Google Cloud Vice President Amit Zavery said in an interview.

Calls for Regulatory Action:

Zavery urged antitrust regulators to act, expressing concerns about the potential long-term problems arising from Microsoft’s cloud strategy.

Microsoft dismissed the argument, stating that competition between cloud hyperscalers remains healthy.

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Microsoft President Brad Smith took a veiled swipe at Google, highlighting Microsoft’s integration across various AI layers.

Critique of Individual Agreements:

Zavery also criticized Microsoft’s agreements with individual cloud vendors, saying they ignore broader issues and allow Microsoft to pick winners and losers.

Microsoft refuted the criticism, stating that they have worked constructively with independent cloud providers to address concerns and provide more opportunities for them.