Microsoft strikes multi-million dollar settlement agreement to settle EU cloud antitrust case

Microsoft has reportedly agreed to a €20 million settlement to resolve an antitrust complaint the company is facing in the European Union over its cloud computing licensing practices.

Movement (through Reuters Agency) rules out a potential EU investigation that could result in a significant fine.

This particular complaint, one of two major ones facing tech giants in the region, relates to a complaint filed by CISPE in late 2022.

Microsoft offers €22 million to settle EU antitrust case

The Cloud Infrastructure Services Providers in Europe (CISPE) group, which includes Amazon and many smaller cloud service providers in the EU, has accused Microsoft of using contractual provisions introduced on October 1, 2022 to the detriment of the European cloud ecosystem.

Microsoft CEO Brad Smith commented: “After more than a year of working with CISPE and its European members, I am pleased that we have not only addressed their concerns of the past, but together we have charted a path forward that will further enhance competition in the cloud computing market in Europe and beyond.”

Under the agreement, Microsoft will create a product that will enable CISPE members to run Microsoft software on their platforms, leveraging Microsoft’s Azure cloud infrastructure, at Microsoft’s own prices.

But the cloud industry doesn’t seem convinced by Microsoft’s actions. An AWS spokesperson said: “We continue to support the growing number of customers, vendors and regulators around the world who are calling on Microsoft to end its discriminatory practices against all customers.”

Google Cloud’s Amit Zavery added: “A number of regulatory agencies have launched investigations into Microsoft’s licensing practices, and we hope that remedies will be developed to protect the cloud services market from Microsoft’s anti-competitive behavior.”

Mark Boost, CEO of UK cloud firm Civo, commented: “By striking a deal with Microsoft that appears to be exclusive to CISPE members, CISPE members in the EU will gain some short-term benefits, but the cloud industry and their customers will pay the price in the longer term… The CMA’s cloud investigation could ensure that the UK charts a different path to the EU.”

CISPE Secretary General Francisco Mingorance indicated that the settlement would mark the end of the ongoing dispute: “This agreement will ensure a level playing field for European cloud infrastructure service providers and their customers.”