Microsoft reached a deal on Wednesday with CISPE (the Association of European Cloud Service Providers), which includes Amazon, allowing it to avoid an EU antitrust investigation and a potential hefty fine, writes Bloomberg. CISPE will withdraw a complaint filed with the European Commission in late 2022 accusing Microsoft of anti-competitive practices that harm cloud technology in Europe.
CISPE argued that Microsoft’s tying of business software to Azure cloud services made it much more difficult for customers to switch cloud providers.
The current agreement will allow CISPE members to use advanced features of Microsoft Azure, and service providers will be allowed to offer Microsoft applications and services in their on-premises cloud infrastructures, the association said in a statement. “This agreement will ensure a level playing field for European cloud infrastructure service providers and their customers,” said CISPE Secretary General Francisco Mingorance.
According to sources Reutersthe settlement cost Microsoft €20 million. As CISPE reported, the settlement did not include Amazon Web Services (AWS), Google Cloud Platform and AliCloud, which drew criticism from the first two companies. In a statement, AWS said the agreement “does nothing for the vast majority of Microsoft customers who still cannot use the cloud of their choice in Europe and around the world.”
“We are exploring our options to continue to fight Microsoft’s anti-competitive licensing practices to promote choice, innovation, and the growth of the digital economy in Europe,” said Amit Zavery, head of Google Cloud Platform.
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