CISPE, which includes companies like Amazon and smaller European cloud providers, filed a complaint against Microsoft late in 2022. They claimed that Microsoft's new licensing rules, introduced in October 2022, negatively impacted the European cloud computing market.
Microsoft has made a significant deal with the Cloud Infrastructure Services Providers in Europe (CISPE) to settle an antitrust complaint about its licensing practices. This agreement helps Microsoft avoid a potential investigation and hefty fines from the European Union.
CISPE, which includes companies like Amazon and smaller European cloud providers, filed a complaint against Microsoft late in 2022. They claimed that Microsoft's new licensing rules, introduced in October 2022, negatively impacted the European cloud computing market.
Although Amazon leads the industry, Microsoft is a major competitor alongside Google. Cloud computing has been under antitrust scrutiny worldwide.
Microsoft President Brad Smith emphasized that the company has addressed previous concerns and paved the way for more competition. "We've created a path for more competition," he said, noting the collaboration with CISPE.
Key points of the agreement:
Equal Access: Microsoft will create a product that allows CISPE members to run Microsoft software on their platforms using Microsoft's Azure cloud infrastructure, at prices matching those within Microsoft's system.
Compensation: Microsoft will compensate CISPE members for losses related to licensing over the past two years, though the specific amount hasn't been disclosed.
Why Amazon and Google are upset
The deal, reportedly worth around 20 million euros, excludes major players like Amazon Web Services (AWS) and Google Cloud Platform. This has sparked criticism from both companies.
AWS stated it remains dedicated to fair practices for all customers, while Google Cloud hopes regulators in other regions will examine Microsoft's licensing policies. CISPE, satisfied with the agreement, has decided to withdraw its complaint and will not file future complaints on these issues.
In a statement to The Verge, Amazon spokesperson Alia Ilyas commented that Microsoft was making "limited concessions for some CISPE members, demonstrating no technical barriers are preventing it from doing what’s right for every cloud customer."
By securing this deal, Microsoft has managed to sidestep a potentially damaging investigation, but the exclusion of industry giants like Amazon and Google leaves them questioning the fairness and broader impact of these licensing practices.
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