Microsoft’s cloud licensing practices face further scrutiny
The move by Brazil's competition authority follows the conclusion of a similar investigation by their UK counterparts.
Published on 7th January 2026
Brazil’s Council for Economic Defense (CADE) has officially launched an “Administrative Inquiry” into Microsoft’s cloud computing and software licensing practices.
As reported by Valor Economico, the investigation commenced at the start of this year.
In a technical note shared by CADE on January 2, the department noted that the investigation is based on the recent findings of the UK’s Competition and Markets Authority (CMA), which concluded that “the licensing practices adopted by Microsoft have produced significant negative effects on the competitive capacity of its rivals, mainly Amazon Web Services (AWS) and Google, to offer cloud computing services, especially in the segment of clients whose workloads depend on Microsoft software as an ‘essential input.'”
CADE adds that while the CMA’s investigation focused on the European economic area and the UK, the “possibility of the same reality occurring in Brazil must be investigated.”
“It is observed that the enterprise software and cloud computing markets exhibit globalised dynamics, with homogeneous technical standards, business models, and supply structures across jurisdictions. Microsoft, AWS, and Google Cloud operate in Brazil with global licensing policies, technological architecture, and commercial strategies similar to those analysed by the CMA. Thus, restrictive practices identified in the United Kingdom tend to be replicated in the Brazilian market, reproducing similar anti-competitive effects.”
The CMA’s investigation concluded in July of this year, finding that both AWS and Microsoft merited further investigation into whether they hold “strategic market status.” Those SMS probes were previously said to be expected to conclude in early 2026.
With CADE deciding to begin the probe, Microsoft has until January 12 to answer a questionnaire setting out various details of its current licensing practices.
The CMA investigation is not the sole investigation Microsoft has faced. Cloud Infrastructure Service Providers in Europe (CISPE) previously launched a probe into the company, though this has since been resolved. In the US, the company is seeing similar discussions with the Federal Trade Commission.
Microsoft operates two cloud regions in Brazil: one in Rio and another in São Paulo. In September 2024, the company said it would invest $2.7bn in expanding its cloud infrastructure in the country.