Google Files Complaint Against Microsoft's Anti-Competitive Cloud Practices

Google has filed a complaint to the European Commission, accusing Microsoft of anti-competitive practices in the cloud computing market. Google alleges that Microsoft is using its dominant Windows Server operating system to impose unfair conditions, such as higher pricing and limited security updates, on customers who opt for competing cloud services instead of Microsoft's Azure platform.

Alphabet unit Google lodged a formal complaint with the European Commission on Wednesday, alleging that Microsoft's cloud computing practices are anti-competitive and designed to lock customers into its Azure platform.

Google Cloud Vice President Amit Zavery criticized Microsoft for exploiting its dominant Windows Server operating system, compelling customers to pay a 400% premium to run the software on rival cloud platforms. Those opting for competitors like Amazon Web Services reportedly face delayed and limited security updates, further disadvantaging them.

Google highlighted a CISPE study from 2023 showing European businesses and public sector entities incur up to 1 billion euros annually in Microsoft licensing penalties. Although Microsoft settled a 20-million-euro antitrust complaint in July with CISPE, key rivals AWS and Google Cloud were not included in the settlement, sparking criticism.

According to Zavery, Microsoft also bundles its collaboration application Teams with its cloud platform, restricting user choice. Google is urging the European Commission to intervene, asserting regulatory action is needed to end Microsoft's market dominance and restore competitive balance.

(With inputs from agencies.)