Microsoft and the Cloud Infrastructure Services Providers in Europe (CISPE) are reportedly close to settling an antitrust complaint from 2022. Sources cited by Politico indicate that the technology giant may pay millions of euros in compensation to halt future complaints from CISPE’s global members.
CISPE filed a complaint with the European Commission in 2022, accusing Microsoft of anti-competitive practices, specifically through unfair software licensing terms. CISPE argued that these terms resulted in discriminatory pricing, complicating competition for other cloud service providers.
The exact payment method is still being discussed. There is a possibility that each involved company could receive individual payments, although this part of the settlement remains unconfirmed.
Terms of the Settlement
The settlement discussions include more than just financial compensation; there is also a proposition that CISPE and its members will refrain from lodging legal complaints against Microsoft globally. While Microsoft shows its willingness to work constructively with CISPE to address the concerns of European cloud providers, CISPE has acknowledged proposals without reaching a final deal.
Since negotiations began in February, CISPE has stressed that any proposed solutions from Microsoft must apply broadly across the sector, benefiting all European cloud customers, including those using Amazon’s services.
A notable stakeholder in this case is Amazon, which competes with Microsoft through Amazon Web Services (AWS). Despite Amazon’s refusal to comment, its role as a supporter of CISPE brings into question its influence on the association’s actions.
In response to CISPE’s concerns, Microsoft made changes to its cloud licensing policies last year. However, these amendments have not fully addressed the association’s complaints.
Brad Smith to meet EU Antitrust Commissioner
Brad Smith, president of Microsoft, has a scheduled meeting with Margrethe Vestager, EU’s Commissioner for Competition, on June 4 in Brussels. The discussions will cover competition and artificial intelligence, with the antitrust complaint likely to be a key topic.
The European Commission has made inquiries regarding the issue but has yet to initiate a formal antitrust investigation. The Cloud Trade Association based in Brussels continues to push for a thorough investigation into Microsoft’s software licensing practices.
Last Updated on November 7, 2024 7:57 pm CET
