Microsoft has reached a $21.7 million settlement to resolve an antitrust complaint concerning its cloud computing licensing practices, effectively sidestepping a potential European Union investigation and hefty fines.
The complaint, lodged by cloud services organization CISPE in late 2022, alleged that Microsoft’s contractual terms introduced on October 1 were detrimental to Europe’s cloud computing ecosystem. CISPE’s members, which include Amazon and several small EU cloud providers, voiced concerns over Microsoft’s dominance in the market.
In response to the settlement, Microsoft President Brad Smith highlighted the collaborative effort with CISPE to address past grievances and pave the way for increased competition in Europe’s cloud computing sector.
As part of the agreement, Microsoft will develop a product enabling CISPE members to run Microsoft software on their platforms within Microsoft’s Azure cloud infrastructure at prices equivalent to Microsoft’s offerings. This product is slated for delivery within nine months.
Additionally, Microsoft will compensate CISPE members for lost revenues linked to licensing costs over the past two years. While specific financial details were not disclosed, sources indicate Microsoft’s offer amounts to around 20 million euros.
However, the settlement excludes major cloud rivals like Amazon Web Services (AWS), Google Cloud Platform, and AliCloud, prompting criticism from AWS and Google. Both companies expressed ongoing concerns about Microsoft’s alleged anti-competitive practices and voiced hope for continued regulatory scrutiny.
In response to the settlement, CISPE announced its withdrawal of the EU complaint and commitment to refraining from initiating or supporting similar complaints in Europe or elsewhere. CISPE Secretary-General Francisco Mingorance emphasized the agreement’s role in establishing a level playing field for European cloud infrastructure service providers and customers.
