Microsoft Will Likely Pay Millions to Settle CISPE’s Antitrust Claims

Microsoft and cloud infrastructure services providers in Europe (CISPE) are reportedly close to settling a 2022 antitrust complaint. Sources cited by Politico indicate that the tech giant may pay millions of euros in damages to stave off future complaints from CISPE’s global members.

CISPE filed a complaint with the European Commission in 2022, accusing Microsoft of anti-competitive practices, in particular through unfair software licensing terms. CISPE argued that these terms resulted in price discrimination, complicating competition for other cloud service providers.

The exact method of payment is still under discussion. It is possible that each of the companies involved will receive individual payments, although this part of the settlement remains unconfirmed.

Terms of the Settlement

Settlement talks involve more than just financial compensation; there is also a proposal that CISPE and its members refrain from filing legal complaints against Microsoft worldwide. Although Microsoft has demonstrated a willingness to work constructively with CISPE to address the concerns of European cloud service providers, CISPE has adopted the proposals without reaching a final agreement.

Since negotiations began in February, CISPE has emphasized that any solutions proposed by Microsoft must be broadly applicable across the sector, to the benefit of all European cloud customers, including those using Amazon’s services.

A notable stakeholder in this case is Amazon, which competes with Microsoft through Amazon Web Services (AWS). Despite Amazon’s refusal to comment, his role as a CISPE supporter calls into question his influence over the association’s activities.

In response to CISPE’s concerns, Microsoft introduced changes to its cloud licensing policies last year. However, these changes do not fully address the association’s complaints.

Brad Smith will meet the EU Competition Commissioner

Brad Smith, Microsoft’s CEO, is scheduled to meet Margrethe Vestager, the EU’s competition commissioner, on June 4 in Brussels. Discussions will focus on competition and artificial intelligence, with an antitrust complaint likely to be a key topic.

The European Commission has investigated the matter but has not yet opened a formal antitrust investigation. The Brussels-based Cloud Trade Association continues to push for a thorough investigation of Microsoft’s software licensing practices.