Skip to main content

Amazon Takes Fight to Trump Over DoD Cloud Contract Awarded to Microsoft

Amazon filed a complaint to the U.S. Court of Federal Claims alleging that the president exerted 'improper pressure' on the Pentagon to choose a company other than Amazon.
  • Author:
  • Publish date:

Amazon  (AMZN) - Get Inc. Report isn’t taking the loss of the JEDI Pentagon contract to Microsoft  (MSFT) - Get Microsoft Corporation Report lying down, filing an official complaint with the U.S. Court of Federal Claims in Washington D.C. alleging that President Trump exerted “improper pressure” during the bidding process.

The company claims that President Trump “launched repeated public and behind-the-scenes attacks” on Amazon in an attempt to influence the choice of who would win the Joint Enterprise Defense Infrastructure (JEDI) contract, which is expected to pay about $10 billion over the next decade.

Amazon alleges that Trump wanted to “harm his perceived political enemy -- Jeffrey P. Bezos” in exerting pressure to block Amazon from the deal. Trump has been a public foil of Bezos since before he became President.

On July 19, the president told the press that “I’m getting tremendous complains about he contract with the Pentagon and Amazon. I will be asking them to look very closely to see what’s going on.”

Scroll to Continue

TheStreet Recommends

The Defense Department did investigate Amazon for conflicts of interest while doing due diligence for the deal, but ultimately ruled that the company did not have any.

However, the department still chose rival Microsoft  (MSFT) - Get Microsoft Corporation Report to provide cloud-based "enterprise level, commercial Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) to support Department of Defense business and mission operations." Amazon essentially created the cloud computing industry and maintains a strong market share lead in it.

"Numerous aspects of the JEDI evaluation process contained clear deficiencies, errors, and unmistakable bias -- and it's important that these matters be examined and rectified,” an Amazon spokesperson previously told TheStreet.

Amazon shares were rising slightly Monday to $1,753.53, while Microsoft shares were flat at $151.81.