Google, owned by Alphabet Inc., has taken a stand against Microsoft’s alleged anti-competitive practices in the cloud services market. In a complaint filed with the European Commission on Wednesday, Google accuses Microsoft of leveraging its dominant position in the operating system market to unfairly favor its Azure cloud platform.
At the heart of Google’s argument is the claim that Microsoft imposes a 400% markup for customers running Windows Server on competing cloud services, while Azure users are exempt from this cost. This, according to Google Cloud Vice President Amit Zavery, creates an uneven playing field, potentially locking customers into Azure and hindering competition.
Further adding fuel to the fire, Google alleges that customers using rival cloud systems experience delayed and limited security updates. This reinforces the argument that Microsoft is prioritizing its own platform over others, potentially putting businesses at risk.
Google’s concerns are supported by a 2023 study conducted by CISPE, a European organization representing cloud providers. The study found that European businesses and public sector entities face up to 1 billion euros annually in Microsoft licensing penalties. This financial burden underscores the potential impact of Microsoft’s alleged practices on the European cloud market.
While Microsoft has settled a 20-million-euro antitrust complaint with CISPE, the settlement excluded Amazon Web Services and Google Cloud Platform, leading to criticism from both companies. Google argues that regulatory action is necessary to break Microsoft’s supposed “vendor lock” and foster a truly competitive cloud market.
This isn’t the first time Google has raised concerns about Microsoft’s cloud practices. In December 2023, Google urged the UK’s Competition and Markets Authority (CMA) to investigate Microsoft for allegedly using licensing practices that discourage consumers from using other services alongside Azure.
The escalating tensions between the tech giants highlight the growing importance of cloud computing and the need for a level playing field for competitors. As the cloud market continues to expand, regulators and businesses alike are paying close attention to ensure fair competition and prevent any single company from dominating the landscape.
