Google has lodged a formal complaint with the European Commission, accusing Microsoft of engaging in anti-competitive practices that inhibit competition within the cloud computing market. The complaint, filed on Wednesday, alleges that Microsoft is leveraging its dominant Windows Server operating system to funnel customers towards its Azure cloud platform.
In a briefing, Google Cloud Vice President Amit Zavery claimed that Microsoft imposes a staggering 400% markup on customers who wish to continue using Windows Server on competing cloud services. This penalty does not apply to customers who utilize Azure. Zavery also noted that users of rival cloud platforms receive delayed and less comprehensive security updates compared to those on Azure.
Supporting its claims, Google referenced a 2023 study by the Cloud Infrastructure Services Providers in Europe (CISPE), which estimated that European businesses and public sector entities incur up to €1 billion ($1.12 billion) annually due to Microsoft’s licensing penalties.
This complaint comes on the heels of Microsoft’s July settlement of a €20 million antitrust case with CISPE regarding its cloud licensing practices, which prevented further EU investigations. However, the settlement did not extend to other competitors like Google Cloud and Amazon Web Services (AWS), leading to criticism from those companies.
In response, Microsoft stated that it has previously resolved similar concerns raised by European cloud providers and suggested that Google may have been hoping for prolonged litigation. A Microsoft spokesperson commented, “Having failed to persuade European companies, we expect Google similarly will fail to persuade the European Commission.”
Google further contended that Microsoft has effectively locked customers into its Teams collaboration application, even when users preferred alternatives, asserting that similar tactics are being employed for Azure. “The time to act is now,” Zavery emphasized, warning that the cloud market risks becoming increasingly restrictive if regulatory action does not occur promptly.
Related topics:
Blackstone Confirms $13 Billion Investment in AI Data Center in Northeast England
Micron Shares Soar on Strong AI-Driven Revenue Forecast
Vietnam Welcomes SpaceX’s $1.5 Billion Starlink Investment Plan