Google has filed a formal complaint against Microsoft with the Federal Trade Commission (FTC) alleging that the company is tricking customers into contracts with its Azure cloud server business. According to The Information, Microsoft is accused of using licensing terms in its Office 365 productivity software to lock customers into separate contracts with Azure. This is not the first time Google has made antitrust allegations against Microsoft. Earlier this year, European regulators were urged by Google to take a closer look at Microsoft's "anti-competitive posture." Three of Microsoft's European rivals also filed a complaint with the European Union's competition watchdog claiming that the company's practices make it expensive and difficult for its cloud users to move to a competitor.
Microsoft has promised to make changes to its European business in response to the complaints. The cloud computing business has recently drawn greater regulatory scrutiny due to the dominance of a few players and its increasingly important role as more businesses move their services to the cloud. The FTC put out a call for "information on the business practices of cloud computing providers including issues related to the market power of these companies, impact on competition, and potential security risks" earlier in March. However, the FTC does not open cases for individual complaints from consumers or rival companies. Complaints are one of a variety of factors the FTC may gather before opening a formal investigation.
Microsoft has been hit by a series of antitrust complaints in the last six months, including one that blocked its takeover of gaming company Activision Blizzard by the Competition and Markets Authority in Europe. The FTC also sued to block the merger. The purchase would have been the largest acquisition in gaming history, but the agency claimed it would allow Microsoft’s Xbox consoles and cloud-gaming platform exclusive access to Activision’s long list of titles, blocking competition. Microsoft has appealed the ruling. The cloud computing industry is under scrutiny for its dominance by a few players and its importance as more businesses move their services to the cloud.