A major dispute has erupted between two tech giants, with Google filing a complaint against Microsoft with the European Commission (EC) over alleged anti-competitive practices. Google claims that Microsoft is forcing its clients to use its Azure cloud services platform, to the detriment of other companies such as Google Cloud and Amazon Web Services (AWS).
According to reports, Google alleges that Microsoft’s licensing terms prevent European companies from switching to rival cloud platforms, despite there being no technical barriers to doing so. Furthermore, Google claims that if clients use other services, Microsoft imposes a 400% price increase. The EC will now examine the case in accordance with standard procedures.
Google maintains that this has significantly harmed European companies and governments, stifling competition, costing €1 billion annually, and increasing the risk of organizations facing Microsoft’s inadequate security culture. Google emphasizes that it has tried to address this issue directly with Microsoft, which has only reached specific agreements with companies that have expressed concerns.
To give voice to customer complaints and find a solution that benefits everyone, Google is taking a step further and filing a complaint with the European Commission. The EC, still headed by Executive Vice President Margrethe Vestager, will now analyze the complaint and open an in-depth investigation if it finds evidence of abuse of dominant position in this sector by Microsoft.
A New Case for the European Commission to Analyze
The case will likely be managed by the new European Commission, led by Ursula von der Leyen, with the Spanish Minister Teresa Ribera in charge of the Competition portfolio, pending approval by the European Parliament. Google also denounces that Microsoft has trapped ‘Teams’ clients for years through anti-competitive practices, which it now replicates in the cloud, generating adverse effects such as higher costs for taxpayers and restrictions on distributors and reseller partners.
Brussels began a formal investigation into Microsoft’s abuse of dominant position and accused the company of imposing its video calling service with the installation of Office software. Microsoft recently resolved an antitrust lawsuit over its cloud computing licensing practices with CISPE, avoiding an EU investigation. However, the deal did not include AWS, Google Cloud Platform, and AliCloud, prompting criticism from Google and AWS.
Microsoft stated that it had amicably resolved similar concerns raised by European cloud providers and expected Google to continue litigating. A Microsoft spokesperson said, “Having failed to persuade European companies, we hope that Google will also fail to persuade the European Commission.”