Amazon has filed an intention to appeal the US Department of Defense's decision to give a $10 billion contract to Microsoft called the ‘Jedi’, reports BBC.
Amazon was considered the favourite to win the deal which is worth $10 billion over the next 10 years.
However the company feels that the decision to not award them the contract was based on political pressure. Amazon already provides cloud computing to the US Central Intelligence Agency (CIA).
President Donald Trump has been at loggerheads with Washington Post which has been critical of his presidency since he took oath of office and this iconic newspaper is owned by Amazon CEO Jeff Bezoz.
According to Defence Secretary Mark Esper who said, "I am confident it was conducted freely and fairly without any type of outside influence."
The Joint Enterprise Defence Infrastructure project - known as JEDI - is designed to modernise the antiquated data and communication systems within the US military.
This was particularly lucrative ‘long term contract’ as other government departments will follow the Defence Department's lead when upgrading their own systems.
An Amazon spokesperson told the BBC: "Amazon Web Services is uniquely experienced and qualified to provide the critical technology the US military needs, and remains committed to supporting the DoD's modernisation efforts.
"We also believe it's critical for our country that the government and its elected leaders administer procurement objectively and in a manner that is free from political influence.
"Numerous aspects of the JEDI evaluation process contained clear deficiencies, errors and unmistakable bias - and it's important that these matters be examined and rectified."
Four companies had applied for the contract, however two years ago IBM and Oracle were eliminated that led to an unsuccessful legal challenge.
Both companies alleged there was conflict of interest after Amazon hired two of the former Defence Department employees who were said to have been involved in the JEDI selection process.
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