Microsoft secures €20m deal to resolve antitrust complaint – Voice of Nigeria

Microsoft has reached a €20 million ($21.7 million) settlement to resolve an antitrust dispute over its cloud-computing licensing practices, helping it avoid an EU antitrust investigation and a potentially hefty fine.

Cloud services organisation CISPE, whose members include Amazon and several small cloud providers in the EU, filed a complaint with the European Commission in late 2022. They argued that Microsoft’s contractual terms imposed on 1 October were harmful to the cloud computing ecosystem in Europe.

In the competitive cloud computing market, Microsoft is trailing leader Amazon but ahead of Alphabet’s Google, a sector under antitrust scrutiny in both Europe and the U.S.

“After more than a year of working with CISPE and its European members, I am pleased that we have not only addressed their earlier concerns, but also set a path forward that aims to increase competition in the European cloud computing market and beyond.” said Microsoft CEO Brad Smith.

Under the settlement, Microsoft will develop a product that will allow CISPE members to run Microsoft software on their platforms using Microsoft Azure cloud infrastructure, at prices equivalent to Microsoft’s. Microsoft has nine months to deliver the product.

In addition, Microsoft will compensate CISPE members for revenue losses related to licensing costs over the past two years, although financial details were not disclosed. According to sources, Microsoft has offered a total of about 20 million euros.

Also read: Microsoft to invest $7.16 billion in data centers in northeastern Spain

The settlement does not cover Amazon Web Services (AWS), Google Cloud Platform, and AliCloud, which has drawn criticism from AWS and Google.

An AWS spokesman said:“We continue to support a growing number of customers, suppliers and regulators around the world calling on Microsoft to end its discriminatory practices against all customers.”

Google Cloud Chief Amit Zavery said he hopes regulators will continue to scrutinize Microsoft’s licensing practices to ensure a competitive market.

CISPE announced that it would withdraw its complaint to the EU and would refrain from initiating or supporting similar complaints in Europe or elsewhere.

CISPE Secretary General Francisco Mingorance said: “This agreement will ensure a level playing field for European cloud infrastructure service providers and their customers.”