U.S. judge says Amazon wins case against Microsoft’s cloud contract with Defense Department

Amazon.com Inc may succeed in overturning the U.S. Department of Defense’s decision to award a large cloud computing contract to rival Microsoft, a U.S. judge has said. On November 14, 2019, Amazon announced a formal challenge to the U.S. Department of Defense’s decision to hand over the $10 billion cloud service contract JEDI to Microsoft.

U.S. judge says Amazon wins case against Microsoft's cloud contract with Defense Department

Federal Judge Patricia Campbell-Smith released her opinion Friday. On February 13, she issued a preliminary injunction that the U.S. government could not continue with the contract “until further court orders.”

Amazon claims that the contract was awarded to its rival as a result of “inappropriate pressure” by U.S. President Donald Trump.

The opinion made no mention of Mr. Trump or Amazon’s alleged undue influence, but focused on how the Pentagon evaluates Microsoft’s data storage in a price plan.

Mr Campbell-Smith wrote that Amazon “may succeed because it believes the Department of Defense mismanaged Microsoft’s price plan”. She added that Amazon might show that Microsoft’s plan was not “technically feasible” as the Pentagon had assessed.

Microsoft had no immediate comment Saturday, but said it cited a “separate technical discovery” and noted that it had found no other government errors in the “complex and thorough process that led to the award of the contract to Microsoft.”

Amazon had no immediate comment Saturday.

As part of the lawsuit, Amazon asked the court to halt the contract. The contract, called the Joint Enterprise Defense Infrastructure Cloud (JEDI), aims to give the military better access to data and technology from remote areas.