Microsoft has resolved a dispute with European cloud companies over allegations of abusing dominance to promote its Azure cloud service. The plaintiffs, including the Cloud Infrastructure Providers in Europe (CISPE) group and supported by Amazon AWS, claimed Microsoft was unfairly marketing Azure as a cloud service due to higher fees charged for the service. The issue was mainly related to the use of Office outside of Azure.
Microsoft has agreed to compensate the affected parties if they withdraw the official complaint submitted to EU antitrust regulators in November 2022. They also promise to make adjustments to software licenses to prevent future disputes, with these changes to be implemented within nine months. CISPE has expressed optimism about the agreement, believing it will create a fair playing field for European cloud infrastructure service providers and their customers.
However, not all parties are satisfied with the deal. An Amazon spokesperson criticized the agreement, stating that it does not address all unfair practices and offering nothing to most Microsoft customers unable to choose their preferred cloud service in Europe and globally.
Interestingly, during the prolonged dispute, Microsoft decided to waive additional fees for AWS users. Google has filed a complaint with the US Federal Trade Commission to investigate this and other alleged unfair licensing practices.
In summary, Microsoft has resolved a contentious issue with European cloud companies over Azure’s market dominance, offering compensation to the affected parties and committing to changes in software licensing practices. While CISPE is optimistic about the agreement, not all parties are content, and further scrutiny from regulators may be on the horizon. The situation highlights the ongoing competition among major cloud service providers and the complexities of ensuring fair practices in the market.
Article Source
https://www.techzine.eu/news/privacy-compliance/122159/microsoft-reaches-deal-with-european-cloud-players-over-privileging-azure/
