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

Apple’s iPhone 13 production may take a hit due to global chip shortage

Apple’s iPhone 13 production may take a hit due to global chip shortage

By Akshay Kedari

Apple Inc. is likely to cut down production of its iPhone 13 model by approximately 10 million units on account of the global chip shortage. The American multinational technology company was previously expected to manufacture 90 million units of the ...

Israel's GoTo Global acquires German e-moped sharing platform emmy

Israel's GoTo Global acquires German e-moped sharing platform emmy

By Akshay Kedari

Israel-based multimodal vehicle sharing services provider GoTo Global Mobility Ltd. has reportedly acquired Germany’s shared e-scooter company emmy. The acquisition will allow GoTo Global to enter the German market as well as accelerate its Eur...

German airline Lufthansa adds four new planes to its A350 fleet

German airline Lufthansa adds four new planes to its A350 fleet

By Akshay Kedari

Deutsche Lufthansa AG recently revealed that it has agreed to take four new Airbus A350-900 long-haul passenger aircraft on lease, utilizing newer planes that are left grounded as airlines reorganize their balance sheets in the wake of the ...

Samsung fined USD 47 million by Dutch watchdog for price-fixing TVs

Samsung fined USD 47 million by Dutch watchdog for price-fixing TVs

By Akshay Kedari

South Korean electronics manufacturing giant Samsung Electronics Co. Ltd. has been charged a penalty of USD 46.9 million by the Dutch competition watchdog Authority for Consumers and Markets (ACM) for price-fixing practices in the Netherlands. The m...

TEA-Lab, MED-EL unveil the world's first multifunction hearing aid app

TEA-Lab, MED-EL unveil the world's first multifunction hearing aid app

By Akshay Kedari

Communication solution provider for cloud meetings Tencent Ethereal Audio Lab (TEA-Lab) together with Austria-quartered implantable hearing solutions leader MED-EL recently announced the launched a first-of-its-kind hearing aid app that incorporates ...