Microsoft Settles €20M Antitrust Case with CISPE, Agrees to Modify Cloud Service Contracts in Europe

  • Microsoft has settled a €20M antitrust complaint with CISPE, an Amazon-backed trade association, in Europe by making changes to its cloud service contract clauses.

  • The deal aims to address concerns about Microsoft tying its business software to Azure cloud services and promote fair competition in the European cloud market.

  • As part of the settlement, Microsoft will reimburse CISPE for legal expenses and fair software licensing campaigns and offer an enhanced version of Azure Stack HCI for European cloud providers.

  • The agreement excludes major players like AWS, Google Cloud, and Alibaba.

  • Microsoft has nine months to fulfill its commitments, with the establishment of a joint ‘European Cloud Observatory’ to monitor progress.

  • If Microsoft fails to meet its obligations, CISPE reserves the right to refile its complaint with the EU Commission.

  • Despite ongoing legal challenges and scrutiny for its investment in OpenAI and discrimination allegations, Microsoft’s stock has gained 24% year-to-date.

  • Microsoft’s resolution of the potential EU antitrust investigation highlights the importance of regulatory outcomes for the tech industry.

Summary based on9 sources