Sep 26, 2024, 12:00 AM
Sep 25, 2024, 12:00 AM

Google accuses Microsoft of unfair practices in EU antitrust case

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Highlights
  • Google has filed an antitrust complaint against Microsoft, alleging unfair licensing practices in the cloud computing industry.
  • The complaint highlights that Microsoft’s practices have led to significant financial penalties for European businesses, limiting their ability to switch cloud providers.
  • This legal action underscores the competitive tensions between Google and Microsoft, as both companies seek to expand their presence in the cloud market.
Story

Google has lodged a formal antitrust complaint against Microsoft with the European Commission, alleging that the software giant employs unfair licensing practices that hinder competition in the cloud computing sector. This complaint is particularly notable as Google itself is currently facing antitrust scrutiny in the United States. The charges highlight the competitive tensions between Google and Microsoft, especially as both companies vie for dominance in the rapidly growing cloud market. According to Google, Microsoft utilizes its popular Windows Server and Microsoft Office products to create barriers for clients, making it challenging for them to switch to other cloud services apart from Azure. The complaint cites a study by CISPE, revealing that European organizations are incurring up to 1 billion euros annually in licensing penalties due to these restrictive practices. This situation underscores the significant financial impact of Microsoft's licensing terms on businesses seeking flexibility in their cloud service providers. The complaint follows a recent settlement between Microsoft and CISPE, which aimed to address similar competition concerns. However, Google, along with other major cloud providers like Amazon Web Services and Alibaba's AliCloud, opted out of this settlement, indicating a lack of confidence in its effectiveness. Microsoft has expressed its expectation that the European Commission will dismiss Google's allegations, pointing to its previous amicable resolutions with other cloud providers. As Google pursues this antitrust claim, it continues to defend itself against allegations in the U.S., where it asserts its position as a misunderstood player in the advertising market. This ongoing legal battle reflects the broader challenges and complexities within the tech industry regarding competition and market practices.

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