Microsoft’s Settlement with European Cloud Service Providers and Its Impact on Competition with Google:
In a move reflecting the ongoing tensions between major tech companies in the cloud computing market,
Microsoft announced an amicable settlement with several European cloud service providers.
This settlement comes from a long-standing dispute with Google,
which hopes to substantiate its claims against Microsoft before European regulatory authorities.
These developments come when major cloud computing companies,
including Microsoft and Google, see increasing profits and compete for dominance in the global market.
Content
Microsoft’s Settlement
European Commission’s Response
Google’s Performance
Competition between Google and Microsoft
Microsoft’s Settlement with European Cloud Service Providers:
Microsoft announced a resolution to the concerns of European cloud service providers,
which Google had hoped would continue litigation.
A Microsoft spokesperson stated: “We have amicably resolved similar concerns raised by European cloud service providers,
even after Google hoped they would continue litigating.
After failing to convince European companies,
we expect Google will fail to convince the European Commission.”
European Commission’s Response:
The European Commission, headquartered in Brussels,
confirmed that it had received Google’s complaint and indicated
it would evaluate it under the usual regulatory procedures to verify
any violations concerning competitive practices in the cloud computing market.
Google Cloud’s Financial Performance
Despite competitive challenges, Google Cloud reported profits of $1.17 billion in the second quarter,
exceeding expectations of operating revenues of $982 million.
Although Google still lags behind Amazon and Microsoft in the cloud market,
it has attracted new clients from startups working in artificial intelligence.
The Renewed History of Competition between Microsoft and Google
This new confrontation between Microsoft and Google recalls
past battles over Microsoft’s dominance in the operating system market,
particularly regarding the Windows operating system.
In 2009, Microsoft agreed to open its operating system to competing
browsers to avoid escalating threats from the European Union related to antitrust issues.
Microsoft’s Settlement with European Cloud Service Providers and Its Impact on Competition with Google