Google has lodged a formal complaint with the European Commission, accusing Microsoft of anti-competitive practices aimed at locking customers into its Azure cloud platform.
This move comes amid growing concerns over Microsoft’s dominance in the cloud computing market, which Google claims is being used to stifle competition.
Google Cloud Vice President Amit Zavery stated that Microsoft imposes a 400% markup on customers who want to keep running Windows Server on non-Azure cloud platforms, a penalty that does not apply to those using Azure.
Additionally, users of competing cloud services receive delayed and limited security updates compared to Azure users.
A 2023 study by the Cloud Infrastructure Services Providers in Europe (CISPE) revealed that European businesses and public sector organizations were collectively paying up to 1 billion euros annually in penalties related to Microsoft’s licensing practices.
Despite a recent 20-million-euro settlement between Microsoft and CISPE over cloud licensing complaints, major competitors like Google and Amazon Web Services were not part of the deal.
Microsoft responded to the complaint, asserting that it had resolved similar issues with other European cloud providers and expressing doubt that Google would succeed in persuading the European Commission to take action. A Microsoft spokesperson also noted that Google had hoped to prolong the litigation process.
Google, however, accused Microsoft of using its dominant position to bundle services like Teams with Azure, locking customers into their ecosystem. Zavery emphasized the urgency for regulatory intervention, warning that without action, the cloud market could become even more restrictive for competitors.
Google is urging the European Commission to step in and address Microsoft’s “vendor lock” practices, which it says limit customer choice and hinder competition in the cloud computing market. Google highlighted Microsoft’s significant market share in Europe, citing its control of over 70% of the region’s business sector.
Microsoft’s restrictions on using its products with rival cloud platforms began in 2019 as the company intensified its focus on cloud computing. With the EU’s cloud market growing at 20% annually, Google stresses the need for immediate regulatory oversight.