Microsoft reached an agreement on Wednesday with CISPE (the Association of European Cloud Service Providers), which includes Amazon, allowing it to avoid an EU antitrust investigation and a potential large fine, Bloomberg writes. CISPE will withdraw a complaint filed with the European Commission at the end of 2022 accusing Microsoft of anti-competitive policies that harm cloud technologies in Europe.
Settlement Details and Implications
CISPE argued that Microsoft’s tying of business software to Azure cloud services made it much more difficult for customers to switch cloud service providers. The current agreement will allow CISPE members to use advanced Microsoft Azure features, and service providers will be allowed to offer Microsoft applications and services on their on-premises cloud infrastructures, notes NIX Solutions. “This agreement will ensure a level playing field for European cloud infrastructure service providers and their customers,” said CISPE Secretary General Francisco Mingorance.
Financial and Competitive Reactions
According to Reuters sources, the settlement of the conflict cost Microsoft €20 million. As CISPE reported, Amazon Web Services (AWS), Google Cloud Platform, and AliCloud were not included in the settlement agreement, which caused criticism from the first two companies. AWS said in a statement that the agreement “does nothing for the vast majority of Microsoft customers who are still unable to use the cloud of their choice in Europe and around the world.”
“We are exploring our options to continue to fight Microsoft’s anti-competitive licensing to promote choice, innovation, and growth in the digital economy in Europe,” said Amit Zavery, head of platform at Google Cloud.
We’ll keep you updated as this situation continues to evolve. The agreement marks a significant step in addressing antitrust concerns in the European cloud services market, but the reactions from major players like AWS and Google indicate that the debate over fair competition is far from over.