Microsoft is nearing an agreement with cloud lobbying group CISPE to avoid an antitrust investigation

Microsoft is reportedly close to reaching a multi-million dollar settlement with cloud infrastructure service providers in Europe (CISPE) to prevent the European Commission from investigating antitrust violations.

CISPE, an Amazon-backed cloud industry group, filed the complaint in 2022 accusing Microsoft of using its dominant position in software licensing to unfairly benefit from its own cloud services. The group argued that Microsoft’s practices lock out customers and make it harder to switch to competitors, much like Apple does with its gadget ecosystem.

According to sources, the proposed settlement includes a financial payment to CISPE, with the possibility of additional payments to individual member companies.

In return, CISPE and its members will agree to drop the antitrust complaint and refrain from suing Microsoft on similar grounds in the future.

Microsoft has denied any wrongdoing and maintains its cloud licensing practices are fair. However, CISPE is reported to be pushing for a solution that will benefit all European cloud customers, not just their members.

The news came ahead of a June 4 meeting between Microsoft CEO Brad Smith and Margrethe Vestager, head of the European Union’s antitrust authority. The talks are expected to focus on competition and artificial intelligence, but the issue of antitrust in the cloud is also likely to come up.

The European Commission has not yet opened a formal investigation procedure, but has already expressed its interest in the matter.

This developing story will be updated as further details emerge.

More here.

Devesh Beri

Technical journalist

This is what motivates me – creating useful and informative content, pursuing my passion for motorsports and music, organizing trips, leading a healthy lifestyle and spending time with my adorable cat Taco.