Tech giant Microsoft is taking legal action against Foxconn parent Hon Hai, after the Taiwanese consumer-electronics manufacturer allegedly failed to comply with a patent-licensing agreement from 2013. In a Friday court filing, Microsoft accused Foxconn of failing to provide twice-yearly royalty reports concerning certain unspecified products and has not made royalty payments on time. The suit was filed in the U.S. District Court for the Northern District of California.
Microsoft on Thursday said that Bing has become inaccessible in China and that it is trying to determine its next steps.
It wasn’t immediately clear why the search engine became unavailable and whether the Chinese government had blocked it. The Cybersecurity Administration of China didn’t respond to a request for comment. The service interruption comes at a sensitive time for U.S. companies operating in China, as trade disputes between the two countries simmer.
Amazon and Microsoft are currently the two largest providers of public cloud services. That business is generating nearly $50 billion a year in revenue now between the two and is expected to double by the end of 2020
The cloud business bolsters the margins of both companies; 60% of Amazon’s trailing 12-month operating earnings came from its AWS cloud segment, which accounted for only 11% of the company’s revenue in that time.
After briefly claiming the top spot on Monday, Microsoft shares rose 0.6 percent Tuesday, pushing the company’s market value to $828.1 billion at the close. The last time Microsoft’s market capitalization was bigger than Apple was in 2010