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Working the issue out bilaterally could help Microsoft stave off
a possible lengthy EU investigation that could lead to a
possible fine and an order to change its business practices.
CISPE, whose members include Amazon and 26 small EU cloud
providers, filed a complaint with the European Commission in
late 2022 alleging that Microsoft's new contractual terms
imposed on Oct. 1 were harming Europe's cloud computing
ecosystem.
Microsoft, which ranks behind market leader Amazon in the cloud
computing sector but ahead of Alphabet's Google, amended its
licensing terms in mid-2022 after rivals in Germany, Italy,
Denmark and France took their grievances to the EU competition
watchdog.
However, Amazon, Google, Alibaba and Microsoft's own cloud
services are excluded from the changes.
"Today, CISPE confirms that it has opened discussions with
Microsoft aimed at resolving ongoing issues related to unfair
software licensing for cloud infrastructure providers and their
customers in Europe," the trade body said in a statement.
"Both parties are exploring potential remedies."
"We continue to work constructively with CISPE to resolve
concerns raised by European cloud providers," a Microsoft
spokesperson said, declining to provide details.
The Commission said it had received several complaints about
Microsoft, including in relation to its product Azure, which it
was assessing based on its standard procedures, but declined to
comment further. Azure is Microsoft's cloud computing platform.
CISPE said the discussions were at an early stage and it was
uncertain whether these would result in effective remedies but
said "substantive progress must be achieved in the first quarter
of 2024".
"We are supportive of a fast and effective resolution to these
harms but reiterate that it is Microsoft which must end its
unfair software licensing practices to deliver this outcome,"
said CISPE secretary general Francisco Mingorance.
Microsoft, which notched up 1.6 billion euros ($1.7 billion) in
EU antitrust fines in the previous decade, has in recent years
changed its approach towards regulators to a more accommodative
one.
($1 = 0.9293 euros)
(Reporting by Foo Yun Chee; Editing by Alexander Smith)
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