Google has filed a complaint with the European Commission, accusing Microsoft of antitrust practices in the cloud industry.
Google said Microsoft is exploiting its dominant operating system, Windows Server, to hinder competition.
Google Cloud Vice President Amit Zavery accused Microsoft of unfair practices. He said the company forced customers to pay 400% more to continue running Windows Server on competing cloud computing services. That didn't apply to those using its own service, Microsoft Azure. In addition, according to the complaint, users of competing cloud platforms receive more limited security updates, often with some delay.
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Google also pointed to a 2023 study by cloud services organization CISPE, which found that European businesses and public sector entities were paying up to €1 billion annually in licensing penalties from Microsoft.
Microsoft reached a €20 million agreement with CISPE in July to settle a complaint about antitrust practices in cloud computing, averting a European Commission investigation. However, the settlement did not include Web Amazon (AWS), Google Cloud Platform and AliCloud, prompting backlash from the first two companies.
Microsoft said it had amicably resolved similar concerns raised by European cloud providers, which Google did not like.
"Having failed to convince European companies, we expect Google will similarly fail to convince the European Commission," a Microsoft spokesperson said.
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Google, for its part, argues that Microsoft's antitrust practices are forcing users to stay with services . "The time for action is now," Zavery said. "The cloud market will become increasingly restrictive if things don't change now."
Google said only regulatory action would stop Microsoft and level the playing field.
“We are asking the European Commission to act now. We are asking them to really look into this issue, to help customers decide and to preserve their choices,” Zavery said.
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This complaint highlights the growing tensions in the cloud computing market, where large players are vying for dominance. Google’s allegations suggest that Microsoft’s practices may constitute unfair competition, potentially limiting consumer choice. If upheld, these allegations could lead to further scrutiny and possible regulatory action by the European Commission, which is known to take a firm stance on antitrust issues. Such investigations could impact Microsoft’s cloud business strategies, potentially causing it to reassess its strategies for aligning with competition laws.
Customers should have the freedom to choose which cloud platform best suits their needs without facing excessive fees or restrictions on critical updates . This situation also raises questions about potential barriers to entry for smaller players in the market, as they may struggle to compete with larger companies that have dominant positions.
Source: www.reuters.com
