Microsoft has reportedly agreed to change its cloud computing practices in order to avoid an antitrust probe from the European Commission, the EU’s antitrust authority.
The potential probe relates to complaints made by European cloud companies including Aruba, OVHcloud, Danish Cloud Community and the Association of Cloud Infrastructure Service Providers (CISPE) about changes Microsoft first made to the terms of its outsourcing license agreement in 2019, and then modified again in 2022.
The cloud vendors raised concerns after their customers were asked to pay more to run Microsoft software in non-Microsoft cloud environments, under what they saw as restrictive cloud licensing policies.
As a result of these licensing changes, on November 9, 2022, CISPE filed a formal complaint with the European Commission’s Directorate-General for Competition (DG Comp) stating: “Microsoft uses its dominance in productivity software to direct European customers to its own Azure cloud infrastructure to the detriment of European cloud infrastructure providers and users of IT services.”
Now, in order to avoid another antitrust probe by the EU Commission, Microsoft has offered to change its cloud computing practices to settle antitrust complaints filed by smaller rivals, a person with direct knowledge of the matter told Reuters.
The European Commission refused to comment on the news, while Aruba, CISPE, the Danish Cloud Community, and OVHcloud did not respond to requests for comment.
CISPE plans to pursue its complaint. A spokesperson for CISPE told Reuters, “We’ve had an initial discussion with Microsoft, but have not seen anything that suggests changes that will ensure that all European customers have the chance to run the software they want in the cloud of their choice free of unfair licence terms or discriminatory pricing.”
A Microsoft spokesperson would not discuss with Computerworld whether a deal had been reached with any of the complainants. “In October 2022, we introduced changes to our licensing practices that address the feedback that we heard from European cloud providers. We are grateful for the productive conversations that led us there and appreciate the feedback that we have received since. We are committed to the European Cloud Community and their success,” the Microsoft spokesperson said.
Microsoft is no stranger to the EU Commission’s antitrust rulings. In 2004 the company paid a $611 million fine after it was found it guilty of illegally bundling media player software with Windows XP. An additional $731 million fine was levelled against the company in 2013 for bundling its Internet Explorer browser with Windows 7.
Microsoft’s proposed acquisition of games studio Activision Blizzard is also currently under scrutiny by the EU Commission, as well as the Competition Market Authorities (CMA) in the UK and the Federal Trade Commission (FTC) in the US.
"*" indicates required fields
Software Asset Management is a business practice that involves managing and optimising the life cycle of software within an organisation.
Software asset management is relevant to many facets of a business - take a look at some of the roles that it can form part of the focus of.
Software vendors come in all shape and sizes - all with their own set of licensing models and rules. We take a look at just a few of them.
As a constantly evolving subject, SAM is not without its challenges. We take a look at some of the most common ones.
Wondering what an investment in SAM could do for your business? Fill out a few details and find out what return you could get!
Answer a few questions about your SAM infrastructure & experience, and we'll put together a personalised recommendation for the future.
A simple health check of what's being used across your Office 365 estate in this FREE, Microsoft backed and easy to setup review.
Just like you would with your vehicle each year, get an annual check up of your software asset management programme.
Overwhelmed by the task of documenting the steps for a successful SAM programme? Get the experts in to help!
Concerned your SAM tools aren't covering your whole estate? Or on the look out for an entirely new tool? Get us in to assist.
Not content with covering all things SAM related, we've teamed up with Capital to provide a comprehensive hardware asset management review.
A simple, one-time reconciliation of the software you have deployed versus the licence entitlement you own.
A regularly scheduled analysis of your organisation's estate, specifically adapted to your needs and budget.
A full appraisal of your Microsoft 365 setup and how best to optimise it through automated recommendations.
An add-on to our SAMplicity One, MOT and Plus offerings, quickly diagnose your ability to migrate your resources to the cloud.
In collaboration with law firm Addleshaw Goddard, ensure the legality of your SAM programme and get assistance with any contract disputes.
Available as standard with SAMplicity Plus, ensure you're compliant if you're unexpectedly audited by a vendor.
We've teamed up with some of the forefront experts in licensing knowledge so you can teach yourself to be an expert too.
Stumped by the continually evolving complexities of SAM? Join us for one of our comprehensive courses, either in-person or online.
It’s chock full of useful advice, exclusive events and interesting articles. Don’t miss out!