Google has filed an antitrust complaint in Brussels against Microsoft, alleging its Big Tech rival engages in unfair cloud computing practices that have led to a reduction in choice and an increase in prices. According to the Financial Times, Google accuses Microsoft of leveraging its Windows software to lock customers into its Azure cloud services, making it challenging for them to switch to alternatives.
In the complaint sent to the European Commission, Google argues that Microsoft is exploiting its customers’ reliance on products such as Windows by imposing steep penalties on those opting for rival cloud providers. A customer moving their Windows software to Azure can do so at little cost, whereas moving to a competitor’s cloud can incur up to a 400 percent markup for new Windows server licenses.
Amit Zavery, vice-president for Google Cloud, stated that the company wants EU regulators to compel Microsoft to remove restrictions on using rival cloud services. “If I already paid for these licenses, I should be able to use it where I choose to,” Zavery said during a press briefing in Brussels.
The complaint does not guarantee a formal investigation, which could take years to resolve. This move comes as Google trails behind Microsoft and Amazon Web Services in the competitive global cloud computing market.
Earlier in July, Microsoft struck a multimillion-dollar deal with a group of rival cloud providers to avoid a formal investigation in Brussels over its market dominance. Microsoft’s president, Brad Smith, noted that the deal resolved past concerns and enhanced competition in the sector, adding that Google is unlikely to persuade the European Commission after failing to convince European companies.
Google also expressed concerns that Microsoft was degrading the user experience for customers moving their Windows software to competing cloud providers and accused the tech giant of discriminatory practices. These financial penalties reportedly apply only to Azure’s main rivals, including AWS, Google Cloud Platform, and Alibaba Cloud.