Google Accuses Microsoft of Cloud Monopoly

Google has lodged an antitrust complaint with the European Commission, accusing Microsoft of monopolising the cloud computing market. 

The tech giant claims that Microsoft’s Azure platform exploits its dominant Windows Server to create barriers for businesses wishing to switch to other cloud service providers.

According to Google, Microsoft imposes financial penalties on companies choosing to operate Windows Server on platforms other than Azure, including a 400% price increase. 

Added to this, the company alleges that customers using rival cloud services are subjected to delayed and restricted security updates, further discouraging them from seeking alternatives.

The allegations come against the backdrop of a 2023 report by CISPE, a cloud services organisation, which estimated that European businesses and public sector entities are collectively paying up to €1 billion annually in licensing fees due to Microsoft’s restrictive policies.

Microsoft recently reached a €20 million settlement with CISPE regarding issues over its cloud licensing practices, effectively avoiding a formal EU investigation. 

However, Google and other tech giants like Amazon Web Services (AWS) and AliCloud were excluded from the agreement, which has led to further objections from these companies.

Amit Zavery, Google Cloud’s vice president, pointed to the urgency of regulatory intervention. He warned that if left unchecked, Microsoft’s dominance would lead to an increasingly restrictive cloud market, hindering competition and innovation. 

“The time to act is now,” Zavery urged, calling for the European Commission to step in and ensure that customers retain the freedom to choose their cloud providers without being penalised.

In response, Microsoft maintained that it had already addressed issues raised by other European cloud providers and noted its doubt about Google’s ability to convince the European Commission of its case. 

A Microsoft spokesperson stated, “Having failed to persuade European companies, we expect Google similarly will fail to persuade the European Commission.”

The conflict between the two tech giants comes at a time of high competition in the cloud market, where Microsoft, Google, and Amazon are vying to be the most preferred.

Microsoft’s cloud platform Azure, alongside its suite of products like Windows Server and Teams, remains central to this dispute, with Google claiming that only regulatory intervention will bring about meaningful change.

Google’s filing is yet another challenge to Microsoft’s business in Europe, adding to the company’s ongoing investigation over its bundling of Teams with other services, by the European Commission.