Google has formally filed an antitrust complaint with the European Commission (EC) against Microsoft, alleging that the tech giant uses anti-competitive licensing practices to stifle competition in the cloud computing market. This action comes as a direct response to Microsoft's 2019 licensing changes, which made it significantly more expensive for businesses to run Windows Server software on rival cloud platforms such as Google Cloud and AWS. The complaint contends that these practices unfairly disadvantage Google's cloud infrastructure, hindering its ability to compete effectively with Microsoft's Azure cloud platform.
The backdrop of this recent complaint lies in the 2022 antitrust complaint filed with the EC by Cloud Infrastructure Services Providers in Europe (CISPE), a non-profit trade association representing European cloud providers. This initial complaint focused on Microsoft's 2019 licensing changes, which it argued were aimed at hindering competition in the cloud market. In July 2024, Microsoft settled with CISPE, agreeing to adjust its licensing policies to create more competitive pricing for Windows Server on alternative cloud platforms. However, this settlement did not include Google, prompting the tech giant to take its own action.
This complaint is not the only antitrust scrutiny facing Microsoft in Europe. In June 2024, the European Commission also accused Microsoft of unfairly bundling its Teams collaboration software with other productivity applications like Office 365. This practice, according to the EC, restricts competition in the market for video conferencing and communication services. These two separate antitrust investigations highlight the growing concerns about Microsoft's competitive practices in Europe.
The outcome of this complaint could have far-reaching implications for the cloud computing market. If the EC finds that Microsoft's licensing practices are indeed anti-competitive, it could impose significant fines and require the company to modify its policies. Such actions could potentially benefit Google Cloud and other cloud platforms, creating a more level playing field for competition.
The battle between Microsoft and Google in the cloud computing market is heating up. Google's complaint highlights the growing tensions between the two tech giants as they vie for dominance in this rapidly evolving sector. With the European Commission now involved, this legal battle could have a significant impact on the future of cloud computing in Europe and beyond.
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