Trends
Microsoft settles cloud computing complaint for $22M
OUR TAKE CISPE, a cloud services organisation whose members include Amazon and dozens of small EU cloud providers, complains to the European Commission in late 2022 that contract terms imposed by Microsoft on October 1 are harming Europe’s cloud computing ecosystem.–Zora Lin, BTW reporter What happe…
Headline
OUR TAKE CISPE, a cloud services organisation whose members include Amazon and dozens of small EU cloud providers, complains to the European Commission in late 2022 that contract terms imposed by Microsoft on October 1 are harming Europe’s cloud computing ecosystem.–Zora Lin,…
Context
OUR TAKE CISPE, a cloud services organisation whose members include Amazon and dozens of small EU cloud providers, complains to the European Commission in late 2022 that contract terms imposed by Microsoft on October 1 are harming Europe’s cloud computing ecosystem. –Zora Lin, BTW reporter Microsoft has reached a $21.7 million agreement with cloud services organisation CISPE to resolve antitrust complaints about its cloud computing licensing practices, avoiding an antitrust investigation by the European Union and a potentially large fine.
Evidence
Pending intelligence enrichment.
Analysis
In the multibillion-dollar cloud computing space, Microsoft trails market leader Amazon but is ahead of Alphabet’s Google. The industry has come under antitrust scrutiny on both sides of the Atlantic. “After working with CISPE and its European members for more than a year, I am pleased that we have not only addressed their past concerns, but have also worked together to define a path forward that brings more competition to the cloud computing market in Europe and beyond,” says Brad Smith, president of Microsoft. CISPE says Microsoft will compensate CISPE members for lost revenue due to licensing fees over the past two years. The company doesn’t disclose financial figures. CISPE also says it will now withdraw its complaint against the EU and will not initiate or support complaints on these issues in Europe and elsewhere.
Key Points
- Microsoft has reached a $21.7 million agreement with Cloud Infrastructure Services Providers in Europe (CISPE), to resolve antitrust complaints about its cloud computing licensing practices.
- This agreement avoids an EU antitrust investigation and potentially significant fines and will provide a level playing field for cloud infrastructure service providers in Europe.
Actions
Pending intelligence enrichment.
