Microsoft nears settlement with cloud lobby group CISPE to avoid antitrust investigation
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Key notes
- Microsoft close to settling antitrust complaint with cloud lobby CISPE.
- Settlement includes possible multi-million euro payment to CISPE.
- CISPE wants settlement to benefit all European cloud customers.
- Microsoft-EU antitrust talks expected to cover cloud issue.
Microsoft is reportedly close to a multi-million euro settlement with the Cloud Infrastructure Services Providers in Europe (CISPE) to prevent the European Commission from investigating it as an antitrust violator.
CISPE, a cloud industry group backed by Amazon, filed a complaint in 2022 accusing Microsoft of using its dominant software licensing position to unfairly advantage its own cloud services. The group alleged that Microsoft’s practices locked customers in and made it difficult to switch to competitors, just like what Apple does with its gadget ecosystem.
According to sources, the proposed settlement includes a financial payment to CISPE, with the potential of additional payouts to individual member companies.
In return, CISPE and its members would agree to drop the antitrust complaint and refrain from suing Microsoft on similar grounds in the future.
Microsoft has denied any wrongdoing and maintains its cloud licensing practices as fair. CISPE, however, is reportedly pushing for a solution that benefits all European cloud customers, not just its members.
The news comes ahead of a June 4th meeting between Microsoft President Brad Smith and Margrethe Vestager, the EU’s antitrust chief. The talks are expected to focus on competition and artificial intelligence, but the cloud antitrust issue is likely to be on the agenda as well.
The European Commission has not yet opened a formal investigation but has previously expressed interest in the matter.
This developing story will be updated as further details become available.
More here.
