Winsage
March 4, 2025
Microsoft opposes regulatory intervention requests from Amazon Web Services (AWS) and Google regarding its software licensing practices, which the UK's Competition and Markets Authority (CMA) has flagged as potentially harmful to competition in the cloud computing sector. Microsoft charges clients using its software in non-Azure environments significantly more—up to four times than those using Azure—leading AWS and Google to argue this pricing structure disadvantages them. The CMA has noted Microsoft's ability to limit access to its software for competitors, which Microsoft contests as an infringement on its intellectual property rights. Google has referred to Microsoft's additional costs as a "software tax," and research indicates that European customers have faced overcharges due to Microsoft's licensing policies. In 2023, AWS held nearly 50% of the UK's cloud market share, while Microsoft held between 30 to 40%, and Google Cloud remained a distant third. The CMA is evaluating whether to use its digital markets powers to address identified barriers, with a final decision expected later this year.
