Google Cloud filed a complaint against Microsoft Azure with the European Commission on Wednesday. In the complaint, it denounces the cloud player’s anti-competitive practices.
According to Google Cloud, Microsoft locks customers into its cloud platform Azure through unfair contracts over Windows Server. In other words, Google suspects its cloud rival of anti-competitive practices. In order to get the practices investigated and possibly punished, the company filed a complaint with the European Commission on Wednesday.
In the unfair contracts, Microsoft offers a significantly lower price for running Windows Server on the Azure cloud. The price to run the service on a cloud service other than Azure can be four times higher.
Huge costs and a failing security culture
In the complaint, Google Cloud highlights the negative impact these practices have on European companies. For example, it cites a 2023 study by the trade association for European cloud players CISPE, which found that these practices cost European companies at least one billion euros a year.
“But they have also led to negative effects further down the chain, including wasted taxpayer dollars, stifling competition, restrictions on distributors and channel partners, and increased risk for organizations exposed to Microsoft’s ‘inadequate’ security culture,” argue Amit Zavery, Vice President and Head of Platform at Google Cloud and Tara Brady, President of Google Cloud EMEA.
Google Cloud filled the complaint without CISPE
Google Cloud now opens a new case against Microsoft Azure after the company previously paid millions to settle an antitrust case over its cloud practices with the EU. The deal offered no relief to Google Cloud and other big cloud players but proved sufficient for CISPE.
That deal offers no solution, according to Google Cloud: “Like many others, we have attempted to engage directly with Microsoft. We have kicked off an industry dialogue on fair and open cloud licensing. And we have advocated on behalf of European customers and partners who fear retaliation in the form of audits or worse if they speak up. Unfortunately, instead of changing its practices, Microsoft has struck one-off deals with a small group of companies.”
As a result, Google Cloud was willing to invest millions to continue the ongoing antitrust case against Microsoft Azure through CISPE. However, the proposal was turned down, and the company is now opening its own case to avoid such deals.
Tip! No Microsoft software audits for CISPE the coming two years