Microsoft in Talks to Resolve EU Antitrust Complaint
Microsoft is discussing with CISPE to find a resolution to its antitrust complaint in the European Union regarding the company's cloud computing licensing practices.
Negotiating a Resolution
Microsoft is engaged in discussions with CISPE in an effort to address its European Union antitrust complaint. The complaint pertains to the software giant's cloud computing licensing practices. The goal is to find a bilateral resolution that could potentially prevent a lengthy EU investigation, which could result in fines and an order to change business practices.
CISPE, a trade group comprised of Amazon and 26 small EU cloud providers, filed the complaint against Microsoft with the European Commission. The complaint was filed in late 2022, alleging that Microsoft's new contractual terms, which came into effect on October 1, were harming Europe's cloud computing ecosystem.
Amended Licensing Terms
Microsoft amended its licensing terms in mid-2022 after facing complaints from rivals in Germany, Italy, Denmark, and France. These complaints were brought to the EU competition watchdog. However, the changes in licensing terms do not apply to Amazon, Google, Alibaba, or Microsoft's own cloud services.
The trade body CISPE confirmed that discussions with Microsoft are underway to address ongoing concerns related to unfair software licensing for cloud infrastructure providers and their customers in Europe. Both parties are exploring potential remedies, although substantive progress needs to be made in the first quarter of 2024.
Seeking Resolution
While the discussions are still in the early stages, CISPE expressed support for a fast and effective resolution to address the harms caused. The trade body reiterates that it is Microsoft's responsibility to end its unfair software licensing practices in order to achieve this outcome.
Microsoft, which has faced 1.6 billion euros ($1.7 billion) in EU antitrust fines in the past decade, has adopted a more accommodative approach towards regulators in recent years. The European Commission has received multiple complaints about Microsoft, including in relation to its cloud computing platform Azure.
