When Google (NASDAQ:GOOG) (NASDAQ:GOOGL) starts accusing other companies like Microsoft (NASDAQ:MSFT) of anti-competitive practices, you know something’s up. Usually, it’s Google on the bad end of that accusation. And this time, it has absolutely nothing to do with Activision-Blizzard (NASDAQ:ATVI). Regardless of the exact circumstances, both stocks are down in Wednesday afternoon’s trading.
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Google ultimately filed a claim, based on a report from The Information, with the Federal Trade Commission noting that Microsoft used its Office 365 licensing terms as a way to keep customers from leaving Azure. Since Microsoft is one of three firms—along with Alphabet and Amazon (NASDAQ:AMZN)—that holds two-thirds of the cloud computing market to itself, any move within that sphere impacts the whole market by extension.
This isn’t the first time Google has cried foul, either; a Reuters report from March detailed how “Microsoft definitely has a very anti-competitive position in cloud.” The report went on to detail how Microsoft was effectively using Office 365 and Windows to “…tie Azure and the rest of cloud services and make it hard for customers to have a choice.” This seems to be directly related to the latest set of accusations, and the FTC has been looking into Microsoft’s cloud computing business practices since “earlier this year,” as noted by a Yahoo Finance report.
Though both took hits in Wednesday afternoon’s trading, they share some similarities. Both Alphabet and Microsoft stocks are considered Strong Buys, and their upside potential is roughly equivalent. With an average price target of $347.12, Microsoft offers 4.03% upside potential. Google, meanwhile, offers 3.46% upside potential with a $125.50 average price target.
