Saturday, 28 March, 2020


Microsoft's Work For Pentagon Suspended As Judge Approves Amazon Appeal

Amazon Stock Continues To Rally Despite Trump Accusations Core ETF Channel Amazon Stock Continues To Rally Despite Trump Accusations By Ian Young
Conrad Doyle | 15 February, 2020, 20:27

Amazon had asked the judge to force a temporary stay of work on the Joint Enterprise Defence Infrastructure, or JEDI, project until the court can rule on Amazon's protest over Pentagon awarding it to Microsoft.

Microsoft said in a statement on Thursday that it was disappointed by the additional delay, but added that it believed it would ultimately be allowed to carry out the project.

A preliminary injunction requested by Amazon was issued by Judge Patricia Campbell-Smith, barring the Department of Defense from starting work on the contract known as JEDI, according to a summary of the ruling.

Not for nothing, this injunction could slow Microsoft's plans to provide hardware and cloud-based software support to the Department of Defense, but could also end up costing Amazon upwards of $42 million if the courts find the current hold to be inaccurate and wrongfully issued in favor of AWS.

The Pentagon and Amazon did not immediately respond to requests for comment.

Among other things it is meant to improve the military's remote access to data and technology, and help it host classified military secrets. In July, Trump publicly stated that other companies told him the contract "wasn't competitively bid", and he said the administration would "take a very long look" at it. Amazon CEO Jeff Bezos has always been a target of Trump; the president calls the Bezos-owned Washington Post "fake news" whenever it publishes unfavorable stories about him. "All we're trying to do through this protest and this request for a legal review is to ensure that a proper decision was made on behalf of USA taxpayers", Amazon spokesperson Jay Carney told CNBC.

Amazon was long seen as the favourite to win the contract until DoD announced in October that it was awarding the JEDI project to Microsoft.

Last year, Mr Trump told reporters that the United States was looking closely at the contract, noting that he had been getting "tremendous complaints" from several companies about it. Amazon believes that President Trump shows bias against the company because the Washington Post, a paper owned by Amazon founder Jeff Bezos, has criticized the President's administration.

The President said in July previous year that it would look into the contract after IBM, Microsoft, and Oracle complained about the bidding process.

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