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    

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

Toyota bets big on a new mode of local transportation: flying taxis
Toyota bets big on a new mode of local transportation: flying taxis
By Akshay Kedari

A California-based aerospace company, Joby Aviation recently announced that it raised USD 590 million as venture capital in a series C round of funding led by Toyota motor company. A sizeable investment made by the automaker in the round is a signifi...

Scandit and Samsung partner to optimize barcode scanning performance
Scandit and Samsung partner to optimize barcode scanning performance
By Akshay Kedari

Software company Scandit AG announced that it will specifically update its range of barcode scanning software for the Samsung Galaxy XCover Pro. The integration of optimized barcode scanning software of Scandit and Samsung’s latest ruggedized a...

Twitter announces new feature to give users more control over replies
Twitter announces new feature to give users more control over replies
By Akshay Kedari

Twitter is finally addressing the issues that have plagued the social network for a while now. The company has reportedly confirmed that it will be testing new features that would allow users to have control over who can reply over their tweets and h...

Faulty sunroofs force Daimler to recall Mercedes-Benz vehicles in U.S.
Faulty sunroofs force Daimler to recall Mercedes-Benz vehicles in U.S.
By Akshay Kedari

The sunroof glass panel can possibly detach itself and pose a major hazard Mercedes-Benz USA could pay $7M if it does not comply with previous settlement terms Daimler AG, the German carmaker, announced that it shall recall about 744,000 Mercede...

Lilly wins Alimta Vitamin Regimen Patent Lawsuit against Apotex Inc
Lilly wins Alimta Vitamin Regimen Patent Lawsuit against Apotex Inc
By Akshay Kedari

  Ruling by the US District Court has concluded that Apotex Inc. would be infringing the Alimta vitamin regimen patent by launching its proposed products until the patent expiration of Lilly   The ruling would bar Apotex from marketing...