Microsoft’s cloud sparks complaint to EU by Amazon-linked group

A COLLECTION of Microsoft’s rivals, including OVH and Amazon Web Services (AWS), fired off an antitrust complaint to European Union (EU) watchdogs, alleging the software giant uses unfair licensing practices to lure regional customers to its cloud infrastructure.

CISPE, a European cloud-company policy group, said it is calling for a probe into Microsoft’s business model before some companies are shut out of the market, which will cause “material harm to customers”. It is the fourth current complaint targeting Microsoft at the Brussels-based European Commission.

Bowing to months of pressure from rival cloud providers, Microsoft earlier this year announced changes to its software licensing terms to make it easier for customers of rival cloud-service companies in Europe to move their existing software to these other networks. The changes took effect on Oct 1.

But CISPE called the changes a “smokescreen” that failed “to tackle the harms to consumers and providers” outlined in a previous complaint to the EU.

Microsoft, whose US$69 billion takeover bid for Activision Blizzard was earmarked on Tuesday (Nov 8) for an in-depth EU review, said the licensing changes it had recently introduced gave customers and cloud providers around the world “even more options for running and offering our software in the cloud.” 

It said it was “committed to addressing valid licensing concerns, and supports a competitive environment where all providers can thrive.” BLOOMBERG