Google Pushes for Antitrust Action Against Microsoft in UK Cloud Market

(FILES) This illustration photograph taken on October 30, 2023 in Mulhouse, eastern France, shows figurines next to a screen displaying a logo of Google, a US multinational technology company. (Photo by SEBASTIEN BOZON / AFP)
(FILES) This illustration photograph taken on October 30, 2023 in Mulhouse, eastern France, shows figurines next to a screen displaying a logo of Google, a US multinational technology company. (Photo by SEBASTIEN BOZON / AFP)
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Google Pushes for Antitrust Action Against Microsoft in UK Cloud Market

(FILES) This illustration photograph taken on October 30, 2023 in Mulhouse, eastern France, shows figurines next to a screen displaying a logo of Google, a US multinational technology company. (Photo by SEBASTIEN BOZON / AFP)
(FILES) This illustration photograph taken on October 30, 2023 in Mulhouse, eastern France, shows figurines next to a screen displaying a logo of Google, a US multinational technology company. (Photo by SEBASTIEN BOZON / AFP)

Google has called on Britain’s antitrust regulator to take action against Microsoft, claiming its business practices had left rivals at a significant disadvantage, according to a letter seen by Reuters.
Microsoft and Amazon have faced mounting scrutiny around the world over their dominance of the cloud computing industry, with regulators in Britain, the European Union, and the US probing their market power.
The CMA (Competition and Markets Authority) launched an investigation into Britain’s cloud computing industry in October, following a referral from media regulator Ofcom which highlighted Amazon and Microsoft’s dominance of the market.
In 2022, Amazon Web Services (AWS) and Microsoft's Azure had a combined 70-80% share of Britain's public cloud infrastructure services market, Ofcom said. Google’s cloud division was their closest competitor, at around 5-10%.
In a letter submitted to the CMA, Google said Microsoft’s licensing practices unfairly discouraged customers from using competitor services, even as a secondary provider alongside Azure.
“With Microsoft’s licensing restrictions in particular, UK customers are left with no economically reasonable alternative but to use Azure as their cloud services provider, even if they prefer the prices, quality, security, innovations, and features of rivals,” Google said in its letter to the CMA.
Such practices directly harmed customers, and were the only significant barrier to competition in Britain’s cloud computing market, the company said.
Microsoft last year updated its licensing rules to address such concerns and promote competition, though the changes did not satisfy rivals.
A Microsoft spokesperson said the company had worked with independent cloud providers to address concerns and provide opportunity and that more than 100 worldwide had taken advantage of the changes.
"As the latest independent data shows, competition between cloud hyperscalers remains healthy. In the second quarter of 2023 Microsoft and Google made equally small gains on AWS, which continues to remain the global market leader by a significant margin," the Microsoft spokesperson said.
Speaking to Reuters, Google Cloud Vice President Amit Zavery criticiced Microsoft’s practices, and said his company was committed to a multi-cloud approach, in which customers could easily move between providers depending on their needs.
"A lot of our software and cloud services interoperate, and can run on AWS or on Azure as well, so you're not restricted," he said. "If you don't fix this, eventually you will have fewer cloud providers, and then innovation will not really happen, and investments will start shrinking."
At issue was Microsoft's decision to update the terms for when customers wanted to use their Windows or other software licenses in the cloud, effectively resulting in higher costs if they used Google or AWS instead of Microsoft's Azure.
Asked why Amazon, which boasts a larger share of the cloud market than Microsoft, did not pose a similarly anticompetitive risk, Zavery said AWS consumers were not facing the same restrictions.
“There are some issues, in terms of cloud interoperability, but we can fix that. That's a discussion between providers, which is much understood, and customers are forcing that conversation,” he said.
“The problem we run into with Microsoft is that there's no technical issue, but you have licensing restrictions which means we are now being prevented from competing.”
Google made six recommendations to the CMA, including forcing Microsoft to improve interoperability for customers using Azure and alongside other cloud services, and banning it from withholding security updates from those that switch.
The CMA did not immediately respond to a request for comment.



Oracle to Invest $6.5 Bn in Malaysian Cloud Services Region

(FILES) US multinational computer technology company Oracle's logo is pictured at the Mobile World Congress (MWC), the telecom industry's biggest annual gathering, in Barcelona on February 27, 2024. (Photo by PAU BARRENA / AFP)
(FILES) US multinational computer technology company Oracle's logo is pictured at the Mobile World Congress (MWC), the telecom industry's biggest annual gathering, in Barcelona on February 27, 2024. (Photo by PAU BARRENA / AFP)
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Oracle to Invest $6.5 Bn in Malaysian Cloud Services Region

(FILES) US multinational computer technology company Oracle's logo is pictured at the Mobile World Congress (MWC), the telecom industry's biggest annual gathering, in Barcelona on February 27, 2024. (Photo by PAU BARRENA / AFP)
(FILES) US multinational computer technology company Oracle's logo is pictured at the Mobile World Congress (MWC), the telecom industry's biggest annual gathering, in Barcelona on February 27, 2024. (Photo by PAU BARRENA / AFP)

Tech giant Oracle on Wednesday said it plans to invest more than $6.5 billion on cloud services data centers in Malaysia, joining a list of US titans rushing to build up their AI infrastructure in Southeast Asia.

The firm said the cloud region would help organizations in the country modernize their applications, migrate their workload to the cloud and innovate with data, analytics and artificial intelligence.

Oracle is working to expand its cloud infrastructure business globally. The company recently projected it will surpass $100 billion in revenue in fiscal 2029, driven by increasing demand for cloud services.

Malaysia's new cloud region will be the firm's third in Southeast Asia, following two facilities in neighboring Singapore.

"Malaysia offers unique growth opportunities for organizations looking to accelerate their expansion with the latest digital technologies," Garrett Ilg, Oracle's executive vice president for Japan and Asia Pacific, said in a statement.

"Our multi-billion-dollar investment affirms our commitment to Malaysia as a regional gateway for cloud infrastructure as well as a comprehensive suite of software as a service applications deployed within Malaysia."

The statement also quoted Malaysia's Investment, Trade and Industry Minister Tengku Zafrul Abdul Aziz as welcoming the investment, saying it would help firms with innovative and cutting-edge AI and cloud technologies to boost their global competitiveness.

"Oracle's decision to establish a public cloud region in Malaysia underscores Malaysia's infrastructure readiness, and its growing position as a premier Southeast Asian destination for digital investments," he added.

Oracle is the latest global tech giant to announce major digital investments in Southeast Asia. Google-parent Alphabet said in May it would invest $2 billion to house the firm's first data center in Malaysia.

Google on Monday said it plans to invest $1 billion to build digital infrastructure in Thailand, including a new data center.

Amazon and Microsoft have also announced investments worth billions of dollars in the region as demand for AI hots up.

Malaysian Prime Minister Anwar Ibrahim on Tuesday announced that the country plans to develop a National Cloud Policy.