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Amazon could be forced to spin off AWS, Oppenheimer says

The logo of Amazon Web Services (AWS) is seen during the 4th annual America Digital Latin American Congress of Business and Technology in Santiago, Chile, September 5, 2018. 

Ivan Alvarado | Reuters

Amazon has faced increasing antitrust pressure this year in both the U.S. and European Union and, on Monday, Oppenheimer warned that the tech giant may have to spin off its lucrative cloud business.

Oppenheimer’s note comes as Amazon protests the Pentagon choosing Microsoft for the military’s ‘JEDI’ contract, which could span a decade of cloud services and be worth as much as $10 billion. The contract marked a major win for Microsoft’s cloud business but Amazon said that “the JEDI evaluation process contained clear deficiencies, errors, and unmistakable bias,” in a a move which is unlikely to take regulatory heat off Amazon. 

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