Google has filed an antitrust complaint with EU regulators, accusing Microsoft of unfair licensing agreements for its Azure cloud services. CNBC reports that Google, the third-largest company in the cloud market behind Microsoft and Amazon, accuses Microsoft of using licensing terms that make it difficult and more expensive to use Windows Server and Office products on non-Azure cloud infrastructure.
Reuters Amit Zavery, vice president of Google Cloud, reportedly told reporters that Microsoft charges customers a 400 percent premium to continue using Windows Server on competing cloud providers, but that fee does not apply to Azure.
Google's complaint comes just months after Microsoft reached a settlement with an industry group backed by European cloud infrastructure providers that had raised similar concerns about Microsoft's licensing practices. The Cloud Infrastructure Services Providers in Europe (CISPE) group agreed to withdraw its EU complaint for 2022, thanks to an agreement that allows European cloud providers to offer Microsoft's apps and services on local cloud infrastructure. Google was obviously not on that list.
CISPE is also establishing an independent European Cloud Observatory (ECO) made up of Microsoft, cloud infrastructure providers in Europe and European customer associations. Amazon Web Services criticized the deal in July, noting that Microsoft only “makes limited concessions to some CISPE members that demonstrate there are no technical barriers preventing the company from doing the right thing for every cloud customer.”
Of course, Microsoft is not satisfied with Google's complaint. “Microsoft has amicably resolved similar concerns raised by European cloud providers, even after Google had hoped they would continue litigation,” Microsoft spokesman Robin Koch said in a statement to The edge“After Google failed to convince European companies, we expect Google to fail to convince the European Commission either.”
Microsoft is also under antitrust scrutiny in the UK because of its cloud practices. There, regulators are investigating the cloud licensing practices of Microsoft and Amazon. The Federal Trade Commission is investigating the AI investments of Microsoft, Amazon and Google and their connection to cloud services.