Amazon wins as US court blocks Microsoft's Pentagon cloud contract

WION Web Team Washington, United States of America Feb 14, 2020, 09.12 AM(IST)

Amazon Photograph:( Reuters )

Story highlights

Both Amazon and Microsoft were competing for the 10 billion dollar contract which was ultimately awarded to Microsoft.

Amazon has managed to score a victory over the Trump administration in the on-going tussle surrounding a major defence contract.

The controversy revolves around a Pentagon cloud computing deal.

Also read: Amazon wants Trump, Esper to testify in fight for $10 billion Pentagon contract

Both Amazon and Microsoft were competing for the $10 billion contract which was ultimately awarded to Microsoft, however in November last year, Amazon sued the Defence Department accusing it of bias.

President Trump has been publicly critical of the Amazon-owned newspaper in the Washington Post. Amazon alleged that Trump used his influence over the Pentagon to deny the company the mega deal.

A federal judge has temporarily blocked Microsoft from going ahead with their work. The actual contents of the court decision remain sealed.

Amazon has demanded testimonies from President Trump, Defence Secretary Mark Esper and his predecessor James Mattis.

Microsoft said it was disappointed by the decision, however, it remains confident of being able to carry on with the deal.

Analysts believe the deal could be a huge driver for Microsoft's growth in 2020.