Google Challenges Microsoft's Cloud Dominance, Files Antitrust Complaint in Europe: Report

Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) Google filed an antitrust complaint against Microsoft Corp (NASDAQ:MSFT) with the European Union’s top antitrust regulator Tuesday for allegedly abusing its influence to lock customers into Microsoft’s cloud platform Azure.

Google Cloud Vice President Amit Zavery said that Microsoft customers had to pay a 400% mark-up to keep running Windows Server on rival cloud computing operators.

For nearly twenty years, Google became a target of EU antitrust action, partly stemming from complaints supported by Microsoft, the Wall Street Journal reports.

Google has long trailed Microsoft and Amazon.com Inc’s (NASDAQ:AMZN) Amazon Web Services in the cloud business.

Google’s complaint comes after Microsoft’s settlement of a complaint from a trade group representing European cloud services providers.

Google argues that Windows Server customers are unfairly penalized if they want to use competing cloud services.

Google has also made similar arguments to those of the U.K.’s competition regulator.

Earlier this week, DA Davidson analyst Gil Luria noted Amazon Web Services and Google Cloud are gaining traction in cloud and code generation businesses at the cost of Microsoft Azure.

Big Tech companies have been drawing global regulatory scrutiny for their alleged anticompetitive practices, which have boosted their toplines and bottomlines. The companies allegedly created “walled gardens” under their products and services, preventing users from resorting to rival services.

Google drew flak for paying companies like Apple Inc (NASDAQ:AAPL) to keep its search engine as the default for its devices. Apple also drew scrutiny for preventing users from using rival operating systems for its devices.

Reports claimed Amazon’s alleged antitrust practices of preferential treatment to its products on its platforms could lead to the company’s breakup. Google also faced similar concerns. However, Wedbush’s Dan Ives snubbed worries over the breakup of Big Techs for alleged violation of antitrust norms.

Price Actions: MSFT stock is up 0.55% at $431.54 at the last check on Wednesday.

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