Microsoft reaches multi-million dollar deal to settle EU antitrust case over cloud
Microsoft has reportedly agreed to a €20 million settlement to resolve an antitrust complaint the company faced in the European Union regarding its cloud computing licensing practices.
The move (via Reuters) prevents a possible EU investigation, which could lead to a significant fine.
This particular complaint, one of two major complaints facing tech giants in the region, is related to a complaint filed by CISPE in late 2022.
Microsoft offers €22 million to settle EU antitrust case
The Cloud Infrastructure Services Providers in Europe (CISPE) group, which includes Amazon and numerous smaller European cloud providers, accuses Microsoft of using the contractual terms imposed on October 1, 2022, to the detriment of the European cloud ecosystem.
Microsoft President Brad Smith commented: “After more than a year of working with CISPE and its European members, I am pleased that we have not only resolved their past concerns, but also worked together to define a path forward that will bring even more competition to the cloud computing market in Europe and beyond.”
As part of the agreement, Microsoft will create a product that will allow CISPE members to run Microsoft software on their platforms using Microsoft’s Azure cloud infrastructure at prices equal to the company’s own rates.
However, the cloud industry does not appear to be convinced by Microsoft’s actions. An AWS spokesperson said: “We continue to stand with the growing number of customers, providers, and regulators worldwide calling on Microsoft to end its discriminatory practices against all customers.”
Google Cloud’s Amit Zavery added: “Many regulators have launched investigations into Microsoft’s licensing practices and we hope to see measures taken to protect the cloud market from Microsoft’s anti-competitive behavior.”
Mark Boost, CEO of UK-based cloud company Civo, commented: “By striking a deal with Microsoft that appears to be exclusive to CISPE members, CISPE members in the EU will receive some benefits in the short term, but the cloud industry and their customers will pay the price in the long term… The CMA’s cloud investigation may see the UK take a different path to the EU.”
CISPE Secretary General Francisco Mingorance indicated that the settlement would put an end to the ongoing complaint: “This agreement will create a level playing field for European cloud infrastructure service providers and their customers.”
