In a significant move, Google has lodged an antitrust complaint with the European Commission, accusing Microsoft of engaging in anti-competitive practices related to its cloud services, particularly Azure. The tech giant claims that Microsoft has been exploiting its dominant position in the Windows Server operating system to hinder competition by imposing unfair licensing contracts.
According to reports from Reuters, Google Cloud Vice President Amit Zavery explained that Microsoft is charging customers a hefty 400% markup to continue using Windows Server on rival cloud platforms. However, this fee does not apply when customers opt for Microsoft’s own Azure cloud service, leading to allegations of biased pricing.
A study conducted by the cloud services organization CISPE in 2023 further supports Google’s claims, estimating that European businesses and public sector organizations pay up to $1.12 billion annually in Microsoft licensing penalties. Google also pointed out that Microsoft has restricted customers to its collaboration tool, Teams, even when they prefer alternative applications, applying the same anti-competitive tactics in the cloud space.
Zavery emphasized the need for urgent action, warning that the cloud market could become more restrictive if regulatory intervention is delayed. Google called for stricter oversight to prevent Microsoft’s alleged ‘vendor lock’ strategy and promote fair competition within the cloud services industry.
Microsoft’s cloud practices are already under scrutiny in the UK, and the Federal Trade Commission is investigating the company’s investments in AI and cloud services alongside Amazon and Google.
