Google is concerned about business practices that could limit companies’ choice in a growing technology market.
Google has officially requested the Federal Trade Commission (FTC) to investigate the exclusive partnership between Microsoft and OpenAI. The deal, which gives Microsoft privileged access to OpenAI’s artificial intelligence (AI) technology on its Azure servers, is raising serious concerns among industry competitors. A palpable tension is building in the world of AI and cloud computing, where innovation collides with alleged monopolistic practices.
An exclusive agreement criticized by Google and its competitors
Microsoft’s partnership with OpenAI, which allows Microsoft to exclusively host the AI company’s technology, limits the access of competitors like Google and Amazon to OpenAI’s tools. Companies wishing to use these technologies while relying on non-Microsoft cloud servers must pay additional fees. A constraint that Google describes as unfair and punitive for customers according to Reuters.
This exclusive agreement gives Microsoft a strategic advantage in the field of cloud computing, already marked by a high concentration of players. With this arrangement, OpenAI is accused of locking its technological ecosystem around Azure solutions, which could slow down the expansion of AI technologies with other cloud providers.
Increased pressure on the FTC and market participants
Google’s complaint comes as the FTC conducts a broader investigation into Microsoft’s business practices, focusing on its strategic clusters in AI and cloud computing. This investigation comes against a backdrop where Microsoft is facing growing allegations of anti-competitive practices, exacerbated by its role as a major investor in OpenAI.
Other players in the technology industry have also expressed concerns, saying such agreements restrict market access and impose additional costs on companies seeking alternatives. A report suggests the deal could limit consumer choice and hamper innovation in a sector where diversity of offerings is crucial.
A clash at the heart of technological innovation
This dispute between Microsoft, Google, and the FTC highlights the strategic importance of cloud services and AI in the technology ecosystem. By focusing OpenAI’s technology on its Azure platform, Microsoft could further strengthen its dominant position, sparking fears about competitive balance in this key area.
The FTC, while reviewing this agreement, must also take into account similar concerns related to other technology leaders, including Google itself, which faces its own antitrust proceedings for practices deemed monopolistic in the sector of the search on the internet.
