Amazon faces widening US antitrust scrutiny in cloud business

Joanna Estrada
December 7, 2019

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.

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Amazon Web Services (AWS), an company, announced a multi-year strategic collaboration with Novartis to reimagine this leading pharmaceutical company's core pharmaceutical manufacturing, supply chain, and delivery operations using AWS's portfolio of cloud services.

Amazon is a global leader in developing sophisticated supply chain and automation systems, enabling millions of products to be delivered to hundreds of millions of individuals, within hours - a market that pharma has been looking to tap into more efficiently for a while now.

FTC declined to comment, while Amazon did not immediately respond to Reuters' request for comment. Sources reported this to Bloomberg news agency. It didn't meet analyst expectations in the third quarter of 2019, and its growth seems to be slowing down a bit, but it still posted $9 billion in sales. It also dominates the market over rivals like Microsoft, Google, and Alibaba, according to estimates from Gartner and Canalys. The fear is that Amazon could punish the companies that work with other cloud providers and favor those that it works with exclusively.

Along with the FTC probes, the Justice Division and Home of Representatives Judiciary Committee are investigating all 4 large tech corporations. Amazon is also under fire from competition authorities in Europe. Warren proposed a sweeping plan back in March that would reverse certain tech mergers, such as Amazon's acquisition of Whole Foods. "With size, I think scrutiny is fair", he said according to the report.

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