Google has filed an antitrust complaint with the European Commission against Microsoft. Google claims Microsoft uses unfair licensing contracts in its Azure cloud computing business. This makes it hard for customers to move their workloads to other clouds.
Google is the third largest cloud computing provider behind Amazon Web Services and Microsoft Azure. Google says Microsoft’s actions make it difficult for customers to switch cloud providers. A 2023 study found European businesses and organizations have paid up to 1 billion euros per year in penalties due to these restrictions.
In July, several cloud companies settled with Microsoft to address competition concerns. Google did not participate, saying it was not satisfied with the agreement.
Google files EU complaint
Google argues that Microsoft uses its dominant products like Windows Server and Microsoft Office to “lock in” clients. This gives Microsoft control over the cloud market. Google believes Microsoft’s practices hurt cybersecurity and innovation.
“Microsoft settled amicably similar concerns raised by European cloud providers, even after Google hoped they would keep litigating,” a Microsoft spokesperson said. “Having failed to persuade European companies, we expect Google similarly will fail to persuade the European Commission.”
Amit Zavery, Google Cloud’s head of platform, said, “We would like the cloud market to remain and become very vibrant and open for all the providers, including European vendors, vendors like us, AWS, and others. Today, the restrictions do not allow choice for customers.”
If Microsoft changes its cloud licensing terms, Zavery said Google and other cloud customers would be “very happy.” After the July settlement, Microsoft agreed to work with CISPE members to release an improved version of Azure Stack HCI.
This would offer similar features that Azure customers currently have. Microsoft denies that its cloud practices harm competition. It says the cloud services market is working well.
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