Excerpt from Times of India Article, Published on July 17, 2024
Microsoft and CISPE have resolved an antitrust complaint, avoiding a European Union probe and substantial fines. The agreement, worth around 20 million euros, excludes major players like Amazon Web Services (AWS) and Google Cloud Platform. CISPE, representing Amazon and smaller European cloud providers, had filed the complaint against Microsoft’s licensing practices in 2022, arguing they were harmful to the European cloud computing market.
Both Google and Amazon criticized the deal. AWS expressed its commitment to fighting for fair practices for all customers, while Google urged other regulators to scrutinize Microsoft’s licensing terms. A Bloomberg report revealed Google’s attempt to derail the settlement by offering CISPE a package worth €470 million ($512 million). This package included €455 million in Google Cloud software licenses over five years, €14 million in cash, and a long-term partnership proposal. AWS also contributed €6 million to support CISPE’s stance against Microsoft.
Despite Google’s generous counteroffer, CISPE accepted Microsoft’s proposal, which granted access to enhanced Microsoft Azure features, a €10 million contribution, and permission for service providers to offer Microsoft applications locally. Confidential documents and anonymous sources cited by Bloomberg disclosed Google’s last-minute effort to maintain CISPE’s antitrust complaint against Microsoft.
The incident underscores the intense competition and regulatory scrutiny faced by tech giants in Europe. Both Google and Amazon slammed the CISPE-Microsoft deal, highlighting their commitment to fair practices. As the European Union continues to enforce strict antitrust regulations, companies must navigate complex legal landscapes to secure favorable outcomes.
The Microsoft-CISPE deal and Google’s counteroffer illustrate the high stakes involved in antitrust battles and the lengths companies will go to secure their market positions. This case highlights the strategic maneuvering within the tech industry as companies vie for dominance in the European cloud market.
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