Microsoft Engages in Discussions with CISPE to Address EU Antitrust Complaint
In an effort to address the European Union antitrust complaint concerning its cloud computing licensing practices, Microsoft is currently engaged in discussions with CISPE, according to a statement by the trade group on Wednesday.
Negotiating a resolution directly with CISPE may assist Microsoft in avoiding a potential lengthy investigation by EU authorities, potentially resulting in fines and mandatory changes to its business practices.
The complaint was lodged by CISPE, representing Amazon and 26 small EU cloud providers, with the European Commission late in 2022. It alleged that Microsoft’s revised contractual terms, implemented on October 1st, were detrimental to Europe’s cloud computing ecosystem.
The antitrust complaint stems from Microsoft’s modified licensing terms in mid-2022, following complaints from competitors in several European countries, including Germany, Italy, Denmark, and France, which were escalated to the EU competition watchdog. Notably, Amazon, Google, Alibaba, and Microsoft’s own cloud services were unaffected by these changes.
Confirming the discussions with Microsoft, CISPE stated that both parties are exploring potential remedies to address ongoing concerns regarding unfair software licensing for cloud infrastructure providers and their customers in Europe. However, CISPE emphasized the need for substantial progress by the first quarter of 2024.
While Microsoft has adopted a more collaborative approach with regulators in recent years, with a spokesperson expressing the company’s commitment to resolving concerns raised by European cloud providers, specific details of the discussions were not disclosed.
The outcome of these discussions remains uncertain, with CISPE highlighting the importance of Microsoft ending its unfair software licensing practices to achieve a swift and effective resolution.
Negotiating with CISPE is seen as a strategic move for Microsoft to avoid a lengthy investigation and potential consequences by EU authorities. If successful, it could help the tech giant in maintaining a positive relationship with European cloud providers and customers while avoiding future legal and financial repercussions.
Overall, the ongoing discussions between Microsoft and CISPE are a significant development in the tech industry, with potential implications for cloud computing practices in Europe. As the first quarter of 2024 approaches, all eyes will be on the progress of these negotiations and their potential impact on the future of cloud computing licensing in the region.