Google, Amazon Criticize Microsoft’s Cloud Computing Changes

Alphabet (GOOGL.O) unit Google and Amazon (AMZN.O) condemned Microsoft’s (MSFT.O) cloud computing changes on August 30, saying they restrict competition and obstruct customers from shifting to rival cloud service providers.

The U.S. software behemoth on Monday disclosed revised licensing deals and other changes that will come into effect on Oct. 1 and which they say will enable cloud service providers to compete. Google, Amazon, Alibaba (9988.HK), and Microsoft’s own cloud services will be exempted from the deals.

Microsoft’s move came after smaller European Union competitors filed their grievances about its cloud service practices to EU antitrust regulators, which afterwards queried market players on the issue and what impact they have encountered.

Amazon, the major cloud service provider followed by Microsoft and Google, was scarring in its critiques.

A spokesperson for its cloud service unit AWS said in an email:

“Microsoft is now doubling-down on the same harmful practices by implementing even more restrictions in an unfair attempt to limit the competition it faces – rather than listening to its customers and restoring fair software licensing in the cloud for everyone.”

Google’s vice president for government affairs and policy Google Cloud Marcus Jadotte was also critical. He added in a tweet:

“The promise of the cloud is flexible, elastic computing without contractual lock-ins. Customers should be able to move freely across platforms and choose the technology that works best for them, rather than what works best for Microsoft.”