Google Files Antitrust Complaint Against Microsoft with EU
According to allegations, Microsoft Azure’s licensing terms may cost cloud clients over a billion euros annually. Do these steep costs hinder cloud development?
Google Files Complaint Against Microsoft with European Commission
Technology titan Google has initiated legal proceedings against Microsoft, charging it with obstructing customer data transfers from Azure cloud services to competitors like Google Cloud. The complaint was lodged with the European Commission on Wednesday.
Google Cites Harmful Practices
Google alleges that Microsoft’s cloud licensing terms prevent European customers from switching to rival cloud platforms, despite no technical barriers. Google claims that Microsoft’s practices have “severely harmed European businesses and governments”, costing them €1 billion annually, wasting taxpayer money, and stifling competition.
Note that the European cloud market is currently led by Amazon’s AWS, closely followed by Microsoft’s Azure and Google Cloud, with Oracle, Salesforce, and IBM rounding out the top six.
Complaint Echoes Previous Case
Google’s complaint references a recent settlement between Microsoft and CISPE (Cloud Infrastructure Service Providers in Europe), a trade body for Europe’s cloud industry. CISPE had filed a similar complaint against Microsoft in late 2022, accusing it of anti-competitive practices with Azure. The specifics of the settlement, which led to CISPE withdrawing its complaint, remain undisclosed.
In response, Microsoft expressed confidence that the European Commission will dismiss Google’s complaint. A Microsoft spokesperson mentioned, referencing a Bloomberg report, that Google had offered a $500 million alternative to keep the antitrust complaint active. “Having failed to persuade European businesses, we expect Google to also fail in convincing the European Commission,” stated the Microsoft spokesperson.
A Call for a More Open Cloud Market
Amit Zavery, head of Google Cloud Platform, criticized Microsoft for locking customers into Azure, undermining cybersecurity, and limiting innovation.
Zavery also advocated for a more open cloud market, arguing that current restrictions do not offer real choice to customers. He urged for Microsoft’s restrictions to be lifted, allowing customers to “choose the cloud provider that they deem best for them, both commercially and technically.”