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Microsoft writes a million dollar check to make the antitrust lawsuit disappear

  • July 11, 2024
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Microsoft is in the process of writing a multi-million dollar check to CISPE to settle its EU antitrust complaint. The complaint dates back to 2022 and relates to

Microsoft writes a million dollar check to make the antitrust lawsuit disappear

Microsoft MWC

Microsoft is in the process of writing a multi-million dollar check to CISPE to settle its EU antitrust complaint.

The complaint dates back to 2022 and relates to the way Microsoft markets its cloud products, which leads to unfair competition. At the start of the negotiations, Cloud Infrastructure Service Providers in Europe (CISPE) gave Microsoft a clear ultimatum, demanding that the American giant end the unfair competition or face legal action.

Microsoft and CISPE announced on Wednesday that they had reached an agreement. According to Reuters, in addition to concessions on licensing, Microsoft has drafted a check for $20 million to make the complaint disappear.

Antitrust complaint from Microsoft

Microsoft has been facing an antitrust lawsuit for several years alleging unfair competition with its cloud products. The company discounts its software when it is bundled with Azure cloud services, meaning the cost of running Microsoft products outside of Azure is higher.

Microsoft suddenly seems very accommodating on the matter. CEO Brad Smith told Reuters that Microsoft has addressed all CISPE complaints and has also developed a plan to further promote competition in the cloud industry in the future. CISPE calls this a “significant victory” to TechCrunch and gives Microsoft “the benefit of the doubt” that it will keep its promises.

The European Cloud Association will not simply give in to Microsoft’s money. To ensure that Microsoft actually keeps its promises, an independent control body will be set up. Microsoft has nine months to implement the requested changes.

Not the first time

This is not the first time Microsoft has faced an antitrust lawsuit. Late last year, Google filed a complaint against Microsoft for unfair practices and the connection between Teams and the 365 bundle has come under fire. In addition, Microsoft has also been named one of the six major gatekeepers under the Digital Markets Act (DMA) and therefore has to comply with stricter rules. This complaint may disappear, but Microsoft has not washed its hands of its hands yet.

The deal mainly affects smaller, local players on the European market and not Microsoft’s biggest competitors. This in turn is causing dissatisfaction at AWS and Google. AWS, which is a CISPE member but was not involved in the negotiations, does not seem to believe in Microsoft’s good intentions. Google also does not seem to want to give up its fight against Microsoft.

This article originally appeared on June 4. The text has been updated with the latest information.

Source: IT Daily

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