Is it right for the U.S. government to pressure Big Tech into massive price cuts on cloud services? It’s reported on 11 July 2025, that the U.S is making a deal with Google to provide discounts on cloud computing. However, this is not the first time, the U.S. General Services Administration (GSA) announced earlier this year that Google would provide them with a 71% temporary discount. Is this a business move or just political pressure?
As technology advances day by day, the demand for cloud computing also increases. With this increasing demand, the U.S is investing about $20 billion per year. Therefore, they are forcing tech giants like Amazon, Google and AWD to provide them with massive discounts.
This step by the U.S government feels more like coercion than negotiation, because it’s not justifiable to pressure tech companies just because they hold the power. If tech companies choose to offer discounts voluntarily, that’s a different matter, but the government’s chosen way raises serious concerns about fairness and overreach.
Many tech company executives are now appearing at Trump’s events, seemingly to maintain favour, especially after his previous use of political influence in the JEDI project, where Amazon was sidelined and the contract was awarded to Microsoft.
This is not just about one project, but it’s about the use of political powers, which is meant to be a trust, not a tool for personal leverage. The U.S government needs to understand this point, instead of just focusing on trimming its budget.