Microsoft reaches truce with cloud suppliers, ending EU antitrust dispute

Microsoft reaches truce with cloud suppliers, ending EU antitrust dispute
Microsoft reaches truce with cloud suppliers, ending EU antitrust dispute


Microsoft has signed a settlement with cloud suppliers after a two-year dispute over its licensing practices,

The agreement, which brokered not too long ago with the cloud affiliation CISPE (which is backed by Amazon, Microsoft’s rival), is meant to steer EU regulators to drop an antitrust criticism they filed towards Microsoft.

CISPE’s Secretary Basic, Francisco Mingorance, expressed optimism concerning the settlement, stating, “CISPE has given Microsoft the good thing about the doubt and believes that this settlement will present a degree taking part in discipline for European cloud infrastructure service suppliers and their prospects.” As a part of the settlement, CISPE will withdraw its November 2022 criticism to the European Fee and pledge to not make or assist comparable complaints within the EU or elsewhere.

In return, Microsoft has dedicated to modifying a few of its software program licensing practices inside 9 months. The tech big will even make a lump sum fee to CISPE and canopy its litigation and marketing campaign prices. Notably, Amazon “will neither profit from nor be sure by these phrases,” in keeping with CISPE.

An Amazon Internet Companies spokesperson criticised the settlement, arguing it presents solely restricted concessions. “Sadly, this settlement does nothing for the overwhelming majority of Microsoft prospects who’re unable to make use of the cloud of their alternative in Europe and all over the world,” the spokesperson mentioned. Amazon continues to face with others “who’re calling on Microsoft to finish its discriminatory practices for all prospects.”

Microsoft President Brad Smith welcomed the decision, stating, “I’m happy that we’ve not solely resolved their considerations of the previous, but additionally labored collectively to outline a path ahead that brings much more competitors to the cloud computing market in Europe and past.”

This settlement follows comparable agreements Microsoft has made with different cloud corporations like OVHcloud, Aruba, and the Danish cloud affiliation to resolve separate antitrust complaints.

Ongoing regulatory challenges

The decision comes amid growing regulatory scrutiny of Microsoft throughout Europe. The corporate has confronted mounting stress from regulators, together with a UK investigation into cloud companies.

Just lately, the European Fee accused Microsoft of violating EU antitrust guidelines by bundling its Groups communications app with its well-liked Workplace suite. This cost adopted a probe launched final yr, triggered by a 2020 criticism from Slack.

In response to those considerations, Microsoft has made efforts to unbundle Groups in Europe and globally. The corporate additionally launched “enhancements” in September 2023 to reinforce interoperability with opponents. Nonetheless, the Fee acknowledged that these modifications had been inadequate to deal with its considerations totally.

EU Competitors Commissioner Margrethe Vestager emphasised that “Microsoft now has the chance to answer to our considerations.” Brad Smith indicated Microsoft’s willingness to take additional steps, stating, “Having unbundled Groups and brought preliminary interoperability steps, we admire the extra readability offered at this time and can work to seek out options to deal with the Fee’s remaining considerations.”

Broader implications and future outlook

The continued regulatory stress extends past the cloud companies dispute. EU regulators are additionally analyzing Microsoft’s partnership with OpenAI, the corporate behind ChatGPT, to find out if it constitutes a disguised merger.

As Microsoft navigates these regulatory challenges, the corporate has expressed a dedication to working with authorities to seek out options that deal with competitors considerations whereas persevering with to innovate within the quickly evolving tech panorama.

The decision of the cloud companies dispute marks a big step for Microsoft in addressing antitrust considerations in Europe. Nonetheless, the corporate nonetheless faces scrutiny on a number of fronts, highlighting the complicated regulatory setting for tech giants within the EU and globally.

(Picture by Matthew Manuel)

See additionally: Australia commits $2 billion to partner with Amazon for building a secure intelligence cloud

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