Microsoft in talks over cloud licensing complaint in the EU

Specifically, the Commission had received complaints from European cloud companies that raised concerns about Microsoft charging customers more to run Microsoft software in non-Microsoft cloud environments. The European cloud firms had called this a restrictive cloud licensing policy.

Although both parties are seeking a solution, the statement sent out by the trade body said that the discussions were at an early stage.

“To ensure swift and effective progress, CISPE has stipulated that substantive progress must be achieved in the first quarter of 2024,” CISPE said in a statement, adding, “We are supportive of a fast and effective resolution to these harms but reiterate that it is Microsoft which must end its unfair software licensing practices to deliver this outcome.”

Dario Maisto, a senior analyst at Forrester, said, “Microsoft trying to settle the antitrust complaint is a sign of the times where hyperscalers are trying to reinforce trust from EU companies that they are indeed trustworthy vendors.”

The trust component is fundamental, he noted. “It is really key for Microsoft to try to limit both economic and reputational damage from a possible investigation.” 

Olivier Blanchard, research director for devices, automotive, policy, and regulation at The Futurum Group, sees Microsoft’s involvement in discussions as a key step toward accomplishing that.