Microsoft hits back at cloud CMA charge, says it isn't raising customer costs unduly

Microsoft, which has been under the microscope in Europe recently for its apparently unfair dominance over the cloud market, has responded to similar complaints from the UK’s Competition and Markets Authority (CMA).

The company insists its terms “do not meaningfully raise cloud rivals' costs,” adding that Amazon remains the market-leading hyperscaler in the UK, and that the CMA should instead focus its efforts on Microsoft’s rival company.

Microsoft also noted Google’s strong quarterly growth and the decline of Windows Server relative to Linux with regards to cloud OS share.

Microsoft tells the CMA to look anywhere but at it

In its 100-point response to the CMA investigation, Microsoft concluded that action should not be taken against the company - but in the event that the CMA presses forward, Microsoft asks that egress fees do not get scrapped, adding that companies should be able to recuperate the costs involved with exiting a contract.

The CMA’s primary concen is how much Microsoft charges for customers to use its software on rival clouds compared to its own Aure service. Most customers indicated that using Microsoft products on Azure was cheaper than on major competitors’ services.

Amazon and Google believe that customers should be able to use their licenses across clouds freely, while Microsoft sees it as a good thing that it’s offering users access to its tools even if they’re not using its cloud.

“The cloud is helping power the digital economy in the UK, but restrictive licensing continues to limit customer choice and innovation," a Google Cloud spokesperson told TechRadar Pro.

"We will continue to advocate against unfair practices, highlighting the consequences of licensing lock-in from legacy vendors like Microsoft.”

Although Microsoft and rival cloud companies have responded to initial enquiries, it could take until the end of 2024 before a provisional decision is reached, at which point the involved parties will have another opportunity to share their thoughts.

Around 18 months after the initial October 5, 2023 referral by Ofcom, the CMA will publish its final decision in line with the statutory deadline of April 4, 2025.

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