Google Cloud, along with AWS and Europe-based Cloud Infrastructure Services Providers in Europe (CISPE), has taken a stand against what they perceive as Microsoft’s anti-competitive cloud software licensing practices in the EU.
Microsoft has refuted these claims, stating that it has collaborated with independent cloud providers in the EU to address their concerns by modifying its licensing terms.
The core issue revolves around Microsoft’s cloud licensing restrictions, which Google Cloud’s Amit Zavery believes limit choice and have negative downstream effects on companies, leading to higher costs and security risks. Zavery argues that Microsoft’s designation of Listed Provider and the additional fees for using non-Azure clouds should be eliminated to create a more level playing field.
The complaints stem from changes in Microsoft’s cloud software licensing terms in an attempt to prevent a previous complaint from German software provider NextCloud, France’s OVHcloud, Italian cloud service provider Aruba, and a group of Danish cloud service providers.
Google Cloud claims that Microsoft’s anti-competitive software licensing practices could have wider implications for emerging technologies like generative AI. However, Microsoft has defended its licensing terms, highlighting that they are fair and applicable to any cloud provider wanting to offer Microsoft services. Microsoft has made changes to its licensing terms based on feedback from various cloud providers globally.
While Google Cloud and its allies raise concerns about the impact of Microsoft’s practices on the EU cloud ecosystem and smaller vendors, not everyone agrees. Daniel Castro from the Center for Data Innovation believes that Microsoft’s licensing terms are fair and not anti-competitive. He maintains that competition in the cloud market is driven by factors like reliability and security rather than licensing practices.
The European Commission has received multiple complaints against Microsoft, and the issue extends beyond the EU. In the UK, AWS has accused Microsoft of anti-competitive practices in the cloud computing market. The UK’s Competition and Markets Authority (CMA) is investigating cloud services offered by both Microsoft and Amazon.
These developments underscore the ongoing debate surrounding cloud service providers and competition policies in the EU and the UK, raising questions about market dynamics, vendor relationships, and the potential impact on consumers and smaller players in the cloud ecosystem.
