Microsoft is nearing an agreement with the EU’s Cloud Industry group to resolve an antitrust complaint

Microsoft is reportedly on the verge of striking a multi-million dollar deal with Cloud Infrastructure Services Providers in Europe (CISPE), an industry group backed by Amazon, to withdraw its antitrust complaint to the European Commission. This potential settlement, while still awaiting approval by CISPE members, represents a significant development in the ongoing dispute over Microsoft’s cloud licensing practices.

The proposed deal comes as CISPE withdraws its request for an investigation into Microsoft’s cloud licensing deals, which the group said were harmful to Europe’s cloud computing landscape. The complaint, originally filed in late 2022, stemmed from concerns that Microsoft’s revised contract terms, introduced on October 1, 2022, stifle competition and disadvantage European cloud service providers.

The settlement could result in Microsoft making a significant financial payment to the industry association, potentially reaching several million euros, according to industry officials familiar with the proposal. In addition, separate payments to individual member companies under CISPE may apply. These financial terms are intended to address and facilitate the resolution of grievances raised by the group.

The agreement also reportedly includes a clause that prevents CISPE and its members from pursuing further legal actions against Microsoft on a global scale. This element of the settlement is crucial because it aims to bring the dispute to a comprehensive end and ensure that similar problems do not arise in other jurisdictions.

Neither Microsoft, Amazon, CISPE nor the European Commission commented on the report, which was originally revealed by Politico. The lack of response has left some details of the negotiations and potential settlement terms currently unconfirmed.

CISPE membership includes Amazon and 26 smaller cloud service providers in the European Union. The group has been vocal about its concerns that Microsoft’s licensing practices could harm competitive dynamics in Europe’s cloud computing sector. The antitrust complaint emphasized that the new terms imposed by Microsoft were perceived as unfairly benefiting the technology giant at the expense of other suppliers.

The origins of this settlement can be traced back to February, when Reuters first reported that Microsoft and CISPE were in talks to resolve the antitrust complaint. These talks appear to be moving toward a concrete agreement, signaling a possible end to a dispute that has generated a lot of interest in the tech industry.

If finalized, the settlement would be a notable example of a major technology company reaching a financial and legal compromise to address regulatory and competitive issues in the European market. This highlights the growing scrutiny of the business practices of large technology companies in the region and the growing willingness of industry groups to challenge these practices through regulatory channels.

The outcome of this case could also influence the approach of other tech giants to their licensing agreements and competitive strategies in the EU, potentially leading to more sustainable and equitable conditions for smaller suppliers. As the details of the settlement become clearer, it will be interesting to watch the broader implications for the cloud computing industry and the regulatory environment in Europe.