Microsoft is currently facing legal action in the UK over allegations that its licensing practices unfairly impact businesses that utilize cloud services from competitors like Amazon, Google, and Alibaba. The case, brought forth by competition lawyer Maria Luisa Stasi, claims that Microsoft’s fees for Windows Server software are higher for UK businesses using rival cloud providers, in an effort to steer customers towards its Azure platform and stifle competition in the cloud computing industry.
The Competition and Markets Authority (CMA) in the UK is also investigating the cloud computing market, focusing on major players such as Amazon AWS, Microsoft Azure, and Google Cloud. This scrutiny extends to Microsoft’s licensing terms for products like Windows Server and Microsoft 365. In response to new licensing fees introduced in 2020, critics argue that Microsoft’s changes favor Azure and have led to a surge in its customer base compared to competitors.
Beyond the UK, the US Federal Trade Commission (FTC) has initiated an antitrust probe into Microsoft’s cloud computing practices, alleging that the company employs restrictive licensing terms to deter customers from switching to other platforms. Similar challenges have been faced by Microsoft in Europe, with the company settling an antitrust complaint with Cloud Infrastructure Service Providers in Europe (CISPE) earlier this year.
As the cloud computing market continues to grow, concerns over competition and fair practices persist. European cloud providers have seen a decline in market share despite overall market expansion, prompting calls for clearer policies to promote competition in the sector.
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Tags: cloud, microsoft
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