A European trade group has begun talks with Microsoft to resolve issues related to unfair software licensing by the cloud infrastructure provider and its customers on the continent. It is understood that in November 2022, the European Cloud Computing Service Providers Alliance (CISPE) complained to Microsoft to the European Commission’s Directorate-General for Competition, saying that the new contract terms implemented by Microsoft on October 1, 2022 added new unfair behaviors. CISPE claims that Microsoft's actions undermine Europe's cloud ecosystem and deprive customers of choice in cloud deployments.
CISPE reiterated on Wednesday that any remedies and solutions must be industry-wide and available to all cloud customers in Europe. Additionally, any agreement will be public and subject to review by third parties.
Francisco Mingorance, CISPE Secretary General, said: “Every day without a solution further undermines the viability of the European cloud infrastructure industry and limits the cloud options available to European customers.”
Microsoft reportedly revised the licensing terms in mid-2022 after rivals in Germany, Italy, Denmark and France expressed dissatisfaction to EU competition regulators. Currently, Microsoft lags behind Amazon (AMZN.US) in cloud services but is ahead of Google (GOOGL.US).
The report added that Amazon, Google, Alibaba (BABA.US) and Microsoft's own cloud services are not included in these changes.
CISPE said it was uncertain whether these discussions would result in effective remedies for the alleged anti-competitive conduct. The group stipulated that substantial progress must be made by the first quarter of 2024.