Google Accuses Microsoft of Anticompetitive Cloud Licensing Practices in UK
Allegations submitted to the Competition and Markets Authority claim Microsoft's licensing restrictions force customers to use Azure, stifling competition.
- Google has submitted a complaint to the UK's Competition and Markets Authority (CMA) alleging that Microsoft's cloud software licensing practices are anticompetitive.
- Google claims that Microsoft's licensing restrictions leave UK customers with no economically reasonable alternative but to use Azure, even if they prefer the prices, quality, security, innovations, and features of rivals.
- Microsoft and Amazon Web Services (AWS) dominate the UK's cloud computing market, with a combined share of 70-80% in 2022. Google's cloud division is their closest competitor, at around 5-10%.
- Google's complaint comes after Microsoft updated its licensing rules last year to address similar concerns, though the changes did not satisfy rivals.
- Google has made six recommendations to the CMA, including forcing Microsoft to improve interoperability for customers using Azure and alongside other cloud services, and banning it from withholding security updates from those that switch.