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☆ Microsoft destroys rival cloud firms' profit margins, Amazon-backed group alleges
▼ + stars: | 2024-03-08 | by ( Ryan Browne | ) www.cnbc.com time to read: +4 min

Igor Golovniov | Sopa Images | Lightrocket via Getty ImagesMicrosoft was accused Friday of abusing the dominance of its Azure cloud computing unit to squeeze a — and, in some cases, evaporate — the profit margins of rival cloud platforms in Europe. Under those rules, Microsoft required firms to purchase a Software Assurance license and "mobility rights" if they wanted to deploy their Microsoft software on hosted cloud services offered by rival providers. It also formed the basis of an investigation from the European Commission seeking to determine whether Microsoft's cloud practices are anti-competitive. But the growth of the unnamed cloud vendor's profit margins didn't match Microsoft's, and in fact the competing cloud vendor saw their margins fall from a positive mid-twenties percentage in 2018 to double-digit negative profit margins in 2023. The biggest decline in profit margins for this cloud firm occurred in 2019, the same year Microsoft changed its licensing terms to favor licensing software on Azure, the CISPE said.

Persons: Igor Golovniov, Redmond, Brad Smith, CISPE, Frederic Jenny, Jenny Organizations: Ofcom, Microsoft, Getty, European Union, Software Assurance, Google, Italy's, Big Tech, European Commission, CNBC, Amazon, Windows, ESSEC Business School Locations: Europe, CISPE, Washington, Italy's Aruba, Paris

Ofcom said it had identified features that made it more difficult for UK businesses to use multiple cloud suppliers. Amazon Web Services (AWS) and Microsoft had a combined 70-80% share of Britain's public cloud infrastructure services market in 2022, Ofcom said. Microsoft said it was committed to ensuring the UK cloud industry remained innovative and highly competitive. The CMA welcomed the move, saying effective competition in the 7.5 billion pound ($9.1 billion) UK market was essential. Google Vice President Amit Zavery said Ofcom's referral demonstrated the need to create an open cloud market with no vendor lock-in.

Persons: Dan Ridsdale, Edison, Dado Ruvic, Fergal Farragher, Amit Zavery, Yadarisa, Paul Sandle, Foo Yun Chee, Mark Potter, Jan Harvey, Jacqueline Wong, Jane Merriman Organizations: CMA, Microsoft, Ofcom, Amazon Web Services, Google, U.S . Federal Trade Commission, Markets, REUTERS, Cloud Infrastructure Services, Amazon, MICROSOFT, Activision Blizzard, Reuters, Thomson Locations: Britain, France, Japan, The Netherlands, South Korea, China, EU, Europe, Bengaluru, London, Brussels

☆ EU antitrust regulators quiz cloud rivals on Microsoft's request for customer data
▼ + stars: | 2023-05-19 | by ( Foo Yun Chee | ) www.reuters.com time to read: +2 min

BRUSSELS, May 19 (Reuters) - EU antitrust regulators are asking Microsoft's (MSFT.O) rivals what kind of customer data they are required to provide to the U.S. tech giant as part of their Azure cloud contracts, six months after a trade group complained about its cloud computing practices. Cloud Infrastructure Services Providers in Europe (CISPE), whose members include Amazon (AMZN.O), alleged last November that Microsoft's new contractual terms imposed on Oct. 1 together with other practices were harming the European cloud computing ecosystem. In a questionnaire sent to cloud providers seen by Reuters, the European Commission asked recipients for a list of contractual clauses requiring these companies to report information about their European customers to Microsoft. The EU watchdog asked if Microsoft may have used the information to go directly to the recipients' customers. Microsoft, hit by more than 1.6 billion euros ($1.8 billion) in EU fines in the previous decade for various antitrust violations, declined to comment.

☆ Exclusive: Google says Microsoft cloud practices are anti-competitive
▼ + stars: | 2023-03-30 | by ( Foo Yun Chee | ) www.reuters.com time to read: +4 min

BRUSSELS, March 30 (Reuters) - Alphabet's (GOOGL.O) Google Cloud has accused Microsoft (MSFT.O) of anti-competitive cloud computing practices and criticised imminent deals with several European cloud vendors, saying these do not solve broader concerns about its licensing terms. In response, Microsoft referred to a blogpost in May last year where its president Brad Smith said it 'has a healthy number two position when it comes to cloud services, with just over 20 percent market share of global cloud services revenues'. "We are committed to the European Cloud Community and their success," a Microsoft spokesperson told Reuters on Thursday. There is intense rivalry between the two U.S. tech giants in the fast-growing, multi-billion-dollar cloud computing business, where Google trails market leader Amazon (AMZN.O) and Microsoft. 'UNFAIR ADVANTAGE'Zavery said individual deals struck with several smaller European cloud vendors only benefit Microsoft.

☆ Microsoft offers to change cloud practices to ward off EU antitrust probe-source
▼ + stars: | 2023-03-28 | by ( Foo Yun Chee | ) www.reuters.com time to read: +2 min

BRUSSELS, March 28 (Reuters) - Microsoft (MSFT.O) has offered to change its cloud computing practices to settle antitrust complaints filed by its smaller rivals, a person with direct knowledge of the matter said on Tuesday, a move that will stave off an EU investigation. French cloud computing services provider OVHcloud (OVH.PA), Italian cloud service provider Aruba and a Danish association of cloud service providers had complained to the European Commission about Microsoft's cloud practices and licensing deals. Microsoft said: "We are grateful for the productive conversations that led us there and appreciate the feedback that we have received since." Trade group CISPE, which counts cloud computing market leader Amazon.com Inc (AMZN.O) as one of its members, said it was not part of the settlement. Reuters reported last week that rivals wanted Microsoft to do more to resolve their complaints after an initial offer fell short.

French cloud computing services provider and complainant OVHcloud (OVH.PA) is also waiting for a more concrete proposal from Microsoft, a person with direct knowledge of the matter said. Resolving the complaints with the companies could help Microsoft stave off a possible EU antitrust investigation that could lead to a fine as much as 10% of its global turnover. The complaints by OVHcloud, Italian cloud service provider Aruba and a Danish association of cloud service providers focused on Microsoft's cloud practices and licensing deals. "We are grateful for the productive conversations that led us there and appreciate the feedback that we have received since," a Microsoft spokesperson said. Cispe's members include cloud computing market leader Amazon.com Inc (AMZN.O).

☆ Microsoft Faces Fresh Antitrust Complaint in Europe
▼ + stars: | 2022-11-09 | by ( Kim Mackrael | ) www.wsj.com time to read: 1 min

Microsoft said it introduced licensing changes this fall that give customers and cloud providers more options for running and offering its software. BRUSSELS— Microsoft Corp. faces an antitrust complaint from a European industry group over its cloud services, adding to recent allegations of anticompetitive behavior against the U.S. tech company. Cloud Infrastructure Service Providers in Europe, or Cispe, a trade group which includes Amazon.com Inc. among its members, said it filed the complaint with the bloc’s competition regulator, the European Commission, on Tuesday. The complaint alleges that Microsoft uses its dominance in productivity software to direct customers in Europe to its Azure cloud service and makes it difficult for them to switch to other cloud service providers, the trade group said.

☆ Microsoft faces new EU antitrust complaint on cloud computing practices
▼ + stars: | 2022-11-08 | by ( Foo Yun Chee | ) www.reuters.com time to read: +2 min

BRUSSELS, Nov 9 (Reuters) - Microsoft (MSFT.O) faces a new antitrust complaint over its cloud computing practices as trade group CISPE, whose members include Amazon (AMZN.O), took its grievance to European Union antitrust regulators on Wednesday. CISPE has alleged that Microsoft's new contractual terms imposed on Oct. 1 together with other practices are irreparably damaging the European cloud computing ecosystem. Amazon is the market leader in the cloud computing sector, followed by Microsoft and Alphabet unit Google . Rivals Amazon.com (AMZN.O), Alphabet's (GOOGL.O) Google, Alibaba (9988.HK) and Microsoft's own cloud services however are excluded from the changes. The Commission could also add another provision to newly adopted tech rules, known as the Digital Markets Act, prohibiting cloud computing gatekeepers from favouring their software applications, CISPE said.

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