Google Files Antitrust Complaint Against Microsoft
A while ago Google filed an antitrust complaint against Microsoft with the European Commission. Google says that Microsoft is unfair in its handling of cloud computing licenses. They say that it affects customers and competing cloud platforms.
What Is Cloud Computing?
Cloud computing allows businesses and people to store and manage data through the internet. People can use services from Microsoft, Google and Amazon. Cloud computing lets you to save files on remote servers rather than your own machines. Microsoft's cloud service is known as Azure and Google has Google Cloud.
What Is the Complaint About?
Google says that Microsoft charges too much for customers to use its popular software, such as Windows on any cloud platform other than Microsoft Azure. According to Google this forces businesses to stick with Microsoft rather than looking into other options. They say this is limiting competition. Google believes that it is unfair and harms European customers who want the freedom to select the best cloud service for their needs.
Microsoft’s Licensing Terms
The issue depends on Microsoft's licensing rules. These rules decide how much a company pays to use Microsoft software on various cloud platforms. According to Google Microsoft charges higher fees for businesses that use its software on competitors' cloud systems. This discourages businesses from switching to other cloud providers such as Google Cloud or Amazon Web Services.
Google refers to this as a "cloud tax". It means businesses are effectively penalized for not using Microsoft's Azure cloud service.
Past Complaints and Microsoft’s Response
This is not the first time Microsoft has faced criticism for its cloud practices. Earlier in 2024 Microsoft settled with some European cloud providers in similar complaints. They agreed to change some of their licensing policies to address concerns about unfair competition.
However Google did not participate in the settlement. They believe Microsoft has not done enough. They also believe that the licensing terms are going to make it difficult for businesses to leave Azure.
In response Microsoft has downplayed Google's complaint saying that they have already addressed these issues and that they expect European regulators to dismiss the case.
Why Does It Matter?
This complaint is part of a larger discussion about competition in the technology sector. Large business such as Microsoft, Google and Amazon control the cloud market. The governments around the world are paying closer attention to how these companies operate. When one company has too much control it can hold back innovation and limit consumer choices.
This complaint may lead to changes in how Microsoft handles its cloud business in Europe. For Google it is an effort to create a more open and competitive environment. By this businesses can easily select the cloud provider that best matches their needs without paying additional costs.
