The tech giants Amazon and Microsoft are currently in the midst of an antitrust probe by the European Commission for their cloud computing businesses. The probe focuses on whether Amazon and Microsoft are using their dominance to limit the choice of customers in the cloud computing market.
The investigation by the European Commission follows complaints by European competitors that Amazon Web Services and Microsoft Azure, the two major players in the market, were imposing unfair terms on their potential customers. In addition, allegations have been raised that the two companies were bundling their services to prevent rivals from competing and deter customers from switching providers.
Amazon and Microsoft both responded to the investigation, with Amazon denying that they have been anti-competitive in any way and claiming that they had not violated any competition laws. Microsoft also rejected allegations of anti-competitive behavior and state that their actions are in full compliance with EU competition law.
Both Amazon and Microsoft have seen their market share in the cloud computing market increase drastically in the last few years, with AWS boasting a market share of around 31% and Microsoft Azure boasting a market share of around 16%. This increase in market share has occurred largely at the expense of European providers, whose cloud computing business has been slipping in comparison.
The antitrust probe is a clear indication that the European Commission is keen to protect European competitors from further market dominance by the two tech giants. Therefore, the investigation focuses on assessing whether Amazon and Microsoft are engaging in anti-competitive practices that would limit consumer choice and reduce competition in the market.
The antitrust probe may, therefore, result in serious changes to the way that Amazon and Microsoft operate in the European cloud computing market. Such changes could mean the lowering of prices or the introduction of new services in the market.
It remains to be seen what consequences the antitrust probe will have for Amazon and Microsoft. What is certain, however, is that the investigation will have a major impact on the cloud computing market and the way the two giants compete. It is up to Europe to make sure that such competition is fair and in the best interests of European customers.
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