Microsoft Enters Talks with CISPE to Address Cloud Licensing Complaints

Network Security

Key Takeaways:

  • Microsoft is in talks with the Cloud Infrastructure Services Providers in Europe (CISPE) to address concerns about anti-competitive licensing policies.
  • CISPE lodged a formal complaint with the European Commission against Microsoft in November 2022.
  • CISPE has set a deadline for Microsoft to make substantial progress by the first quarter of 2024.

Microsoft has recently started talks with the Cloud Infrastructure Services Providers in Europe (CISPE) to address an ongoing antitrust case. These discussions aim to resolve concerns regarding the company’s anti-competitive licensing policies.

The Cloud Infrastructure Service Providers in Europe (CISPE) association is an organization that represents cloud infrastructure providers based in Europe. It includes both local European businesses and larger cloud service providers such as Amazon Web Services (AWS).

In 2019, Microsoft introduced a new policy requiring customers to purchase an additional license if they wanted to use their on-premises licensing on any cloud platform. CISPE launched a formal complaint with the European Commission against Microsoft back in November 2022. The complaint alleged that Microsoft is making it expensive for customers to run Windows, Windows Server, or Office on cloud infrastructure apart from Azure.

Microsoft made a series of changes to its licenses to make it more cost-effective for EU customers to run its software on other cloud platforms back in August 2022. However, these changes only apply to independent cloud providers and do not include Amazon Web Services, Google, and Alibaba.

CISPE demands progress on cloud licensing policies

Now, Microsoft is taking proactive measures to address the situation and is willing to make further concessions. However, it should be noted that these discussions are still in their early stages and may not necessarily result in a resolution. The Cloud Infrastructure Services Providers in Europe (CISPE) has set a deadline for Microsoft to make substantial progress within the first quarter of 2024.

“Every passing day without resolution further undermines the viability of Europe’s cloud infrastructure sector and restricts the cloud options available to European customers. We are supportive of a fast and effective resolution to these harms but reiterate that it is Microsoft which must end its unfair software licensing practices to deliver this outcome,” said Francisco Mingorance, Secretary General at CISPE.

Microsoft has previously been hit with antitrust complaints by the European Commission. Last year, the company settled a similar case regarding software licensing and cloud infrastructure with local suppliers like OVHcloud, Aruba S.p.a, and DCC. It was related to the higher costs of running Microsoft software in competitors’ clouds.