Investigations into Microsoft’s Cloud Practices Expand
In an unfolding development, a South African agency is poised to scrutinize Microsoft’s cloud computing licensing practices, mirroring an ongoing investigation in the European Union. This news comes on the heels of a significant shift in Microsoft’s strategy, as it has recently decoupled Microsoft Teams from its Office 365 suite globally, a move driven by the EU regulator’s intervention following complaints from Salesforce’s Slack regarding anticompetitive behavior.
A source conversant with the situation has pointed out that the South African inquiry bears a strong resemblance to the EU’s antitrust case. However, in an intriguing turn of events, Microsoft, in an email communication, has stated it has no knowledge of any formal complaint being lodged against it by the South African body.
Microsoft’s Familiarity with Cloud Computing Disputes
The cloud computing arena is not unfamiliar with disputes involving Microsoft. Last year, CISPE, a trade group, brought grievances to the European Union’s attention, asserting that Microsoft’s market dominance and certain business practices were hampering the overall health of Europe’s cloud computing market. They accused Microsoft of “restricting choice and inflating costs” for European customers transitioning to cloud services, thereby “distorting Europe’s digital economy.”
Moreover, Microsoft and Amazon have caught the eye of the UK’s Competition and Markets Authority. Their “hyper-scale” cloud services, which capture a significant share of the market, have been under investigation due to concerns about stifling competition. The Ofcom report suggests that these services command between 60% to 70% of the total expenditure on cloud services.
Similar concerns have been echoed by Google, which has approached the UK’s Competition and Markets Authority. Google has urged the authority to address Microsoft’s competitive practices in the cloud computing sector, particularly those associated with Azure.
These series of events point to a growing scrutiny of Microsoft’s practices in the cloud computing space, as competitors and regulatory agencies alike call for more openness and fair play in a market that is crucial for the burgeoning digital economy.
