Microsoft Settles EU Antitrust Dispute with Cloud Providers, CISPE Withdraws Complaint

Agreement with CISPE signals resolution in licensing practices feud, as Microsoft navigates regulatory challenges in Europe.

Microsoft has reached a settlement with cloud association CISPE, effectively ending a two-year antitrust dispute over its licensing practices. The agreement, brokered recently, sees CISPE withdrawing its November 2022 complaint filed with the European Commission, marking a significant development in Microsoft's regulatory landscape.

Under the terms of the settlement, Microsoft has committed to adjusting its software licensing practices within nine months and making a lump sum payment to CISPE to cover litigation costs. CISPE, backed by Amazon, acknowledged the settlement as a step towards fostering a fairer playing field for European cloud infrastructure providers and their clientele.

In contrast, Amazon Web Services (AWS) has criticized the settlement, asserting it offers minimal concessions and fails to address broader concerns affecting Microsoft's customer base in Europe and globally.

This resolution comes amidst escalating regulatory scrutiny of Microsoft in Europe, including separate investigations into its bundling practices with the Office suite and interoperability concerns related to its Teams communications app. As it continues to face challenges from EU Competition Commissioner Margrethe Vestager, Microsoft has responded with adjustments to its product contributions.

Regardless of this settlement, the progress of Microsoft is being marked as the company remains under scrutiny across multiple fronts, reflecting the complicated regulatory environment shaping the tech industry in Europe and beyond.