Google Files Antitrust Complaint Against Microsoft Over Cloud Practices

 Google filed a formal complaint with the European Commission on Wednesday, accusing Microsoft of anti-competitive practices in the cloud computing sector. The complaint highlights concerns over Microsoft’s alleged efforts to lock customers into its Azure cloud platform through restrictive licensing terms.

“Microsoft’s licensing terms restrict European customers from moving their current Microsoft workloads to competitors’ clouds,” stated Amit Zavery, Vice President and Head of Platform at Google Cloud. “These practices impose a striking 400% price markup, significantly harming European companies and governments.”

The complaint underscores the broader implications of Microsoft’s practices, which Google claims have cost European businesses at least €1 billion annually. “Not only have these practices led to a waste of tax funds and stifled competition, but they have also heightened risks for organizations exposed to Microsoft’s inadequate security culture,” Zavery added.

The Financial Times reported that Google’s decision to escalate the issue to the European Commission follows unsuccessful attempts to engage directly with Microsoft. “We have advocated on behalf of European customers and partners who fear retaliation in the form of audits or worse if they speak up,” Zavery explained. “Unfortunately, instead of changing its practices, Microsoft has struck one-off deals with a small group of companies.”

The complaint also references a 2023 study by the cloud services organization CISPE, which found that European businesses and public sector bodies were paying up to €1 billion per year on Microsoft licensing penalties1. “Microsoft’s strategy is simple. It leverages a software monopoly to lock customers into Azure,” Zavery remarked.

This development marks the first time Google has filed an antitrust complaint against Microsoft with the European Commission. “We believe this regulatory action is the only way to end Microsoft vendor lock-in and create a level playing field for competitors,” Zavery concluded.

The European Commission is expected to review the complaint and determine whether to launch a formal investigation into Microsoft’s cloud practices.