Google Cloud has reiterated its concerns regarding Microsoft’s cloud licensing practices, claiming that a year after it lodged a complaint with the European Commission, no action has been taken to address the issue. The company argues that Microsoft’s licensing rules create a significant financial burden for customers wishing to migrate to rival cloud services like Google Cloud and AWS, effectively leading to vendor lock-in.
Currently, Microsoft’s policy allows clients with on-premises licenses to transfer these to Azure, while competitors like Google Cloud require clients to purchase new licenses, increasing costs by up to five times. This discrepancy has prompted complaints from Google, which asserts that such practices harm market competition.
The British Competition and Markets Authority (CMA) has recognized that Microsoft’s policies restrict choice in cloud services, yet concrete actions to rectify these issues have yet to materialize. Additionally, the U.S. Federal Trade Commission (FTC) is conducting its own antitrust investigation concerning Microsoft, emphasizing the ongoing scrutiny of the company’s market behavior.
Google Cloud executives, Marcus Jadotte and Giorgia Abeltino, highlighted the widespread economic harm caused by restrictive licensing, suggesting that government action could enable a significant boost to the European Union’s GDP and enhance productivity.
In response, Microsoft contends it has reached amicable settlements with European cloud providers on similar matters and anticipates that Google’s campaign will not yield the desired outcomes with the European Commission.