Google complains to EU over Microsoft cloud licensing practices

Google has filed an antitrust complaint at the European Commission against Microsoft over alleged anti-competitive practices in its system of cloud licensing. 

The complaint targets Microsoft’s cloud platform Azur, which Google argues restricts European customers from moving their workload to competitors’ cloud systems. 

Google claims that the platform locks customers in through the Windows server, which is central for applications and Microsoft’s services, with Microsoft imposing financial penalties on businesses wanting to use other cloud providers, as well as security or interoperability obstacles.

This is not the first time Microsoft has been in the sights of the EU antitrust enforcer for alleged unfair practices on the cloud market. In 2022, the Amazon-backed cloud lobby CISPE – the Cloud Infrastructure Services Providers in Europe – filed a complaint with the European Commission over Microsoft’s contractual terms. The case was dropped last July after a €22m deal was struck with CISPE.

Amazon – AWS – Microsoft and Google lead the cloud market infrastructure worldwide. And the battle between the “Big Three” is fierce.

Microsoft is also facing an antitrust probe launched on 27 July 2023 by the European Commission over Teams, its communication and collaborating product. If the dominant position is proven, the company could face a fine of up to 10% of its annual revenue.

This article will be updated to reflects reactions from the European Commission and Microsoft.