- Amazon recently lost out to Microsoft on a $10 billion cloud-computing contract for the Department of Defense.
- Amazon has challenged the decision on the Joint Enterprise Defense Infrastructure contract, alleging in court that President Donald Trump‘s bias against Amazon played a role in the decision.
- In documents made public Monday, Amazon said Trump led “repeated public and behind-the-scenes attacks” to ensure Amazon didn’t get the contract in order to harm CEO Jeff Bezos, “his perceived political enemy.”
- Trump has not hidden his dislike of Amazon: He’s accused the company of “getting away with murder on tax” and accused Bezos of using the publication he owns, The Washington Post, as a “lobbyist weapon.”
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Amazon blamed President Donald Trump’s “repeated public and behind-the-scenes attacks” against the company and its CEO, Jeff Bezos, as the reason its cloud unit wasn’t given a much-anticipated $10 billion contract with the US government.
Amazon is challenging the Department of Defense’s decision to award the coveted Joint Enterprise Defense Infrastructure contract, a $10 billion deal to help move sensitive data to a cloud server, to Microsoft. In a federal complaint made public on Monday, Amazon alleged that Trump influenced the Pentagon’s decision in order to serve “his own personal and political ends” and harm Bezos, “his perceived political enemy.”
Amazon’s cloud unit, Amazon Web Services, has been considered a leader in the cloud industry, and its loss of the Pentagon deal came as a surprise. Instead, the JEDI contract was awarded on October 25 to Microsoft, a decision that experts dubbed “a huge feather in the cap for Microsoft” and a “black eye for Bezos and Amazon” in interviews with Business Insider.
However, Amazon was quick to challenge the Department of Defense’s decision, filing a complaint in the US Court of Federal Claims in November. Amazon’s complaints were spurred by reports that Trump wanted to “scuttle” the bidding process for JEDI and by a forthcoming book alleging that Trump ordered Defense Secretary James Mattis to “screw Amazon” out of the deal last year.
Trump has not been quiet about his dislike of Bezos. Since his 2016 presidential campaign, Trump has repeatedly heaped criticism on Amazon’s effect on brick-and-mortar retailers and the US Postal Service and accused it of “getting away with murder on tax.”
Trump has also, without evidence, accused the Amazon CEO of using the newspaper he owns, The Washington Post, as a “lobbyist weapon” for the company.
Sources told Vanity Fair in 2018 that Trump was “obsessed” with Bezos and had been looking for ways to “f— with him.”
“The question is whether the President of the United States should be allowed to use the budget of DoD to pursue his own personal and political ends,” Amazon said in the filing made public on Monday, adding that Trump’s “intervention casts the errors discussed above in an even harsher light and puts the very integrity of the government procurement process in question.”
Read Amazon’s full JEDI complaint below: