Amazon’s cloud business facing antitrust scrutiny from FTC

As per a Bloomberg report citing sources familiar with the matter at hand the U.S. Federal Trade Commission (FTC) has broadened its scrutiny of Amazon.com Inc beyond its retail operations and now includes its cloud-computing business as well.

As per the report, U.S. antitrust enforcers have been asking software companies questions pertaining to Amazon Web Services.

In recent years, big technology companies including Apple, Alphabet Inc’s Google, Facebook Inc, and Amazon.com Inc are facing a slew of antitrust probes by the U.S. Congress, federal government, as well as state attorneys generals.

FTC’s Technology Enforcement Division was focusing its probes of multi-sided platforms on illegal conduct and mergers that previously won antitrust approval.

Both, the FTC and Amazon declined to comment on the report.

Cloud computing is one of the fastest-growing sectors in the technology industry. For companies, its more cost effective to rent servers from Amazon rather than run their own data centers.

Amazon is the biggest cloud services provider, and competes closely with Microsoft Corp. Smaller companies also compete to provide services in the cloud computing sector and are tapped by developers and corporate customers.

According to IBES data from Refinitiv, analysts expect Amazon’s cloud business to generate $34.9 billion in sales in 2019.

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