Amazon files the formal complaint of the Jedi contract

Amazon filed a lawsuit in US federal court challenging the US Department of Defense's decision last month to award a $10 billion defense infrastructure joint venture (Jedi) contract on its cloud computing business to compete with Microsoft.

According to an AWS spokesperson, the complaints and additional motions for discovery have been filed with a US court in federal lawsuits with a seal. However, Amazon did not explain the basis for his complaint.

In a court document seeking a protective order, Amazon explained that the filings contain "confidential information, trade secrets and sensitive financial information" that could "cause either party to severe competitive harm." The company also said that "the record in this share rate is likely to contain confidential information as well."

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Potential Bias

Suggestions of bias in the Pentagon's decision to reward Microsoft with a $10 billion Jedi treaty were dismissed by US Secretary of Defense Mark Esper last week when Amazon announced plans to challenge the decision.

For quite some time now, Amazon has been considered the favorite to win the Jedi contract after IBM, Oracle and even Google dropped out of the bid. E-commerce giant cloud computing division ARM is likely to win a lucrative contract, which is why Microsoft's award this came as such a surprise.

However, Amazon believes politics got in the way of a fair tender as the company's CEO Jeff Bezos has been an outspoken critic of President Trump. Microsoft CEO Satya Nadella on the other hand believes that staying out of politics played a big role in helping them win the Pentagon's cloud computing contract.

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With $10 billion on the line for more than a decade, it's no surprise that Amazon will be trying to appeal the Department of Defense's decision like the oracle did when it filed a lawsuit earlier this year, saying the contract favors a single cloud service provider.

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Via Reuters


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