The fear is that Amazon could punish the companies that work with other cloud providers and favor those that it works with exclusively. One issue the FTC could look at is whether Amazon has an incentive to discriminate against those software companies, which sell their products to clients of AWS, while at the same time competing with Amazon. 6 By May 2022, the probe was also reported to be looking into Amazons recently completed. It competes with hundreds of other software companies large and small that offer similar products. The FTCs antitrust probe was reported to be focusing on Amazon Web Services as of December 2021. The unit’s profitability in recent years has helped keep investors happy even as the company continues to spend heavily to expand both its retail and cloud-computing businesses.Īmazon also sells an array of products that run on top of those basic services, such as databases, machine-learning tools and data-warehousing products. Will Microsoft Face Antitrust Issues Over Its Cloud Unit AWS and Microsofts Azure Face Antitrust Probe in UK 13 1444 Azure and. puts AWS’s share at 48% and Microsoft’s at 16%.ĪWS accounted for 60% of Amazon’s operating income in the most recently reported 12 months. It is several times bigger than its next largest rival, Microsoft Corp.’s Azure, according to analyst estimates. Antitrust Scrutiny in Cloud Business BY Dina Bass, David McLaughlin, Naomi Nix and Bloomberg December 4, 2019, 5:06 PM PST U.S. The agency’s scrutiny won’t necessarily result in an enforcement action against the company.ĪWS dominates the market for foundational cloud-computing technology that provides the storage and computing power needed to run applications. The outreach by the FTC signals that the agency, which is already looking at Amazon’s conduct in its vast online retail business, is taking a broader look at the company to determine whether it could be violating antitrust laws and harming competition. Federal Trade Commission have been asking software companies recently about practices around Amazon’s cloud unit, known as Amazon Web Services, said the people, who declined to be named because they weren’t authorized to speak publicly. Microsoft, as many people have forgotten, actually did get prosecuted for antitrust violations in the late 1990s, in a case that stretched into the mid-2000s. beyond its retail operations to include its massive cloud-computing business, according to people familiar with the matter. Federal Trade Commission is pushing forward with antitrust scrutiny of Inc.’s cloud computing business, according to people familiar with the matter. antitrust enforcers have broadened their scrutiny of Inc.
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