Google has filed an antitrust complaint with EU regulators, accusing Microsoft of unfair licensing terms. Google, the third-largest cloud provider behind Microsoft and Amazon, claims that Microsoft’s licensing terms make it difficult and expensive to use Windows Server and Office products on any cloud infrastructure other than Azure.
Claims of Unfair Licensing Practices
Amit Zavery, vice president of Google Cloud, told reporters that Microsoft has forced customers to pay a 400 percent premium to continue using Windows Server on competing cloud providers. This premium, according to Zavery, does not apply to Azure, making it a significant disadvantage for competitors.
Google’s complaint follows Microsoft’s recent settlement with a group of European cloud infrastructure providers (CISPE), which had raised similar concerns about Microsoft’s licensing practices. CISPE agreed to drop its 2022 EU complaint in exchange for a deal allowing members to host Microsoft apps and services on their on-premises cloud infrastructure. However, Google is apparently not included in this arrangement.
Microsoft’s Response and Broader Investigations
The agreement with CISPE led to the creation of the independent European Cloud Observatory (ECO), involving Microsoft, European cloud providers, and customer associations. Amazon Web Services criticized this deal, suggesting that Microsoft made only “limited concessions to some CISPE members” and that no technical barriers prevent broader fair practices.
Unsurprisingly, Microsoft is not pleased with Google’s complaint. Microsoft spokesman Robin Koch stated, “Microsoft has amicably resolved similar concerns raised by European cloud providers, even after Google had hoped they would pursue litigation,” adding that they expect Google “will not be able to convince the European Commission.”
Ongoing Regulatory Scrutiny
In addition to Google’s complaint, Microsoft is facing antitrust scrutiny over its cloud practices in the UK, where regulators are investigating both Microsoft and Amazon’s cloud licensing policies, notes NIXSolutions. Simultaneously, the Federal Trade Commission is looking into AI investments from Microsoft, Amazon, and Google to understand their connections to cloud services.
We’ll keep you updated as more developments emerge in this evolving situation.