Amazon’s cloud business comes under U.S. antitrust scrutiny

By Akshay Kedari  | Date: 2019-12-05

Amazon’s cloud business comes under U.S. antitrust scrutiny

U.S. Federal Trade Commission (FTC) has recently expanded its investigation on Amazon beyond the retail operations to the company’s cloud computing business. Lately, the U.S. antitrust enforcers was seen interviewing software firms about Amazon Web Services’ practices.

Several tech companies like Alphabet Inc.’s Google, Facebook Inc., Amazon and Apple Inc. have already faced antitrust probes issued by the state attorneys general, Congress and the federal government. Reportedly, FTC’s Technology Enforcement Division started directing its investigation of multi-sided platforms on illegal mergers and conducts after winning the antitrust approvals. However, Amazon and FTC did not comment on this development.

For the uninitiated, Amazon is the one of the largest providers of cloud services. Its major competitors include Microsoft Corp. However, smaller firms are turning out to become fierce competitors to the firm by offering cloud-based services to corporate customers and developers.

Indeed, cloud computing marks as one of the fastest-growing sectors in the IT industry. Businesses prefer to rent out servers from Amazon instead of building data centers from the ground up. Analysts predict that Amazon’s cloud unit’s sale could gross up to $34.9 billion in 2019.

Prior to this, Amazon had made headlines when it announced filing a suit with the U.S. Court of Federal Claims against the lost contract to supply cloud services to Department of Defense (DoD).

For the record, the contract, dubbed JEDI (Joint Enterprise Defense Infrastructure), included offering cloud storage of sensitive data and technology of the military to the DoD, and could result in revenue of around $10 billion over the period of 10 years.

Amazon claims that the decision was politically motivated by President Donald Trump, as he dislikes Amazon’s CEO Jeff Bezos who also owns the Washington Post. Meanwhile, Andy Jassy, CEO of AWS, shared his thoughts in an interview stating that the decision wasn’t arbitrated fairly.
 

Source Credit: https://in.reuters.com/article/uk-amazon-com-cloud-ftc/amazon-faces-u-s-antitrust-scrutiny-on-cloud-business-bloomberg-idINKBN1Y9037

About Author

Akshay Kedari     aeresearch.net

Akshay Kedari

A qualified computer engineering graduate, Akshay Kedari takes pride in having his way with words. Following his passion for content creation, he writes insightful pieces on aeresearch.net and a few other portals. Also endorsed with a short-term experience in web deve...

Read More

More News By Akshay Kedari

McDonald’s to leave Russia after 30 years amidst Ukraine’s invasion

McDonald’s to leave Russia after 30 years amidst Ukraine’s invasion

By Akshay Kedari

After Ukraine’s invasion, multinational fast-food giant McDonald's Corp. is reportedly planning to sell all its restaurants in Russia, pulling operations from the nation after 30 years. The world's biggest fast-food chain closed 847 ...

Berlin’s GetHenry bags USD 17.4 Mn seed funding for business expansion

Berlin’s GetHenry bags USD 17.4 Mn seed funding for business expansion

By Akshay Kedari

GetHenry, a Berlin-based company that offers couriers and logistics organizations electric last-mile delivery bikes, has reportedly raised USD 17.4 million seed round to grow its operations across Europe. The latest investment round was led by LocalG...

Ferrari to equip the upcoming Purosangue with its trademark V12 engine

Ferrari to equip the upcoming Purosangue with its trademark V12 engine

By Akshay Kedari

Italian luxury sports car manufacturer Ferrari S.p.A. will equip its much-awaited Purosangue SUV with a 12-cylinder engine, as it focused more on fuel-efficient models. Confirming the news, Ferrari Chief Executive Benedetto Vigna claimed that the com...

White House to spend USD 3 billion on EV battery manufacturing in U.S.

White House to spend USD 3 billion on EV battery manufacturing in U.S.

By Akshay Kedari

According to reliable sources, the Biden administration is planning to provide USD 3 billion in finance to reinforce EV battery manufacturing capabilities in the United States. The apparent funds will be issued by the Department of Energy from Presid...

Telefonica eyeing Israel’s high-tech sector to improve its portfolio

Telefonica eyeing Israel’s high-tech sector to improve its portfolio

By Akshay Kedari

Telefonica S.A. is planning to increase its investments in Israel’s high-tech sector this year, a senior official reported recently. The company, which is Europe’s third-largest telecommunications company, is also eyeing the country&rsquo...