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NEW YORK — A federal court has ordered a temporary halt in Microsoft’s work on a $10 billion military cloud contract that Amazon was initially expected to win. Amazon sued in November to revisit that decision, alleging that President Donald Trump’s bias against the company hurt its chances to win the project.
Amazon requested the court injunction last month. Both the documents requesting the block and the judge’s decision to issue the temporary injunction are sealed by the court.
A public court notice, however, confirmed the injunction on the Pentagon and noted that Amazon will have to establish a security fund of $42 million that will be used to pay damages if the court later finds the injunction was improper. No further details of the decision were immediately available.
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Microsoft said in a statement Thursday that it was disappointed by the additional delay, but said it believes that it will ultimately be allowed to move forward with the project.
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