Google and Amazon are stepping up lobbying efforts to challenge Microsoft’s dominance in federal software contracts.

Through trade groups like NetChoice, they’re pushing for more competition and highlighting concerns about software procurement spending.

The Department of Government Efficiency (DOGE), led by Elon Musk, has asked agencies to inventory their software licenses to identify cost-saving opportunities.

Microsoft holds a major share in federal software deals, representing 31% of software spending across 24 agencies, about US$2.4 billion in 2021. That’s three times more than its closest competitor.

Congress is also taking action. Senator Joni Ernst introduced a bill to consolidate licenses and set up new enterprise agreements. Supporters say this could save US$750 million a year.

NetChoice argues that Microsoft’s market share leads to higher costs and cybersecurity risks.

Microsoft has faced scrutiny over a 2023 Chinese hacker breach and a 2024 global cloud failure.

While Microsoft defends its practices as value-driven, Amazon and Google say its contracts block fair competition. They are pushing for procurement reforms, and DOGE is reviewing the recommendations.

Recent Microsoft developments