Google vs Microsoft: The Antitrust Showdown in Cloud Services

Google Takes Action Against Microsoft

Google has filed an antitrust complaint to EU regulators, accusing Microsoft of unfair licensing contracts for its Azure cloud services. CNBC reports that Google, which is third behind Microsoft and Amazon in the cloud market, alleges that Microsoft uses licensing terms that make it difficult and expensive to use Windows Server and Office products on non-Azure cloud infrastructure.

The Cost of Competition

Reuters highlights remarks from Google Cloud Vice President Amit Zavery, who stated that Microsoft imposes a 400 percent markup for customers who wish to continue using Windows Server on rival cloud providers, a fee that does not apply to Azure usage.

Ongoing Industry Dynamics

• Google's complaint follows a recent settlement involving the industry group CISPE, which had raised similar concerns.
• CISPE is creating an independent European Cloud Observatory (ECO) to ensure transparency in cloud practices.
• Amazon Web Services criticized Microsoft's limited concessions to CISPE members, showing concern about the competitive environment.

Microsoft's Response and Broader Implications

Microsoft has expressed its dissatisfaction with Google's complaint, stating that they had settled amicably with other European cloud providers. Microsoft spokesperson Robin Koch commented on the situation, suggesting that Google may struggle to convince regulators.

Additionally, Microsoft is under scrutiny in the UK as regulators investigate cloud licensing practices, complicating the landscape for these technology giants involved in AI and cloud services.