The dynamic echos that in Amazon’s retail marketplace, where third-party sellers depend on the platform to reach customers because of its size, but in many cases they also compete with Amazon’s own products. The fear is that Amazon could punish the companies that work with other cloud providers and favor those that it works with exclusively.
Amazon gets antitrust scrutiny data usage software#
One issue the FTC could look at is whether Amazon has an incentive to discriminate against those software companies, which sell their products to clients of AWS, while at the same time competing with Amazon. It competes with hundreds of other software companies large and small that offer similar products. The unit’s profitability in recent years has helped keep investors happy even as the company continues to spend heavily to expand both its retail and cloud-computing businesses.Īmazon also sells an array of products that run on top of those basic services, such as databases, machine-learning tools and data-warehousing products. puts AWS’s share at 48% and Microsoft’s at 16%.ĪWS accounted for 60% of Amazon’s operating income in the most recently reported 12 months. It is several times bigger than its next largest rival, Microsoft Corp.’s Azure, according to analyst estimates. The agency’s scrutiny won’t necessarily result in an enforcement action against the company.ĪWS dominates the market for foundational cloud-computing technology that provides the storage and computing power needed to run applications.
The outreach by the FTC signals that the agency, which is already looking at Amazon’s conduct in its vast online retail business, is taking a broader look at the company to determine whether it could be violating antitrust laws and harming competition. Federal Trade Commission have been asking software companies recently about practices around Amazon’s cloud unit, known as Amazon Web Services, said the people, who declined to be named because they weren’t authorized to speak publicly.
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