Cloud providers settle dispute with Microsoft

The industry association Cloud Infrastructure Service Providers in Europe (CISPE) has withdrawn its competition complaint against Microsoft to the EU Commission. The US company is making concessions to the cloud providers and will make some changes to its contractual clauses for its cloud services, CISPE announced. Microsoft will also reimburse the association for the costs of legal disputes and "campaigns for fair software licenses" over the past three years. According to media reports, this will amount to 20 million euros.

CISPE had complained to the EU Commission in November 2022 after Microsoft had changed its contractual clauses the month before. The EU Commission launched its first investigations in May 2023. These included Microsoft's Azure cloud offering.

Extended version

Microsoft will now offer an extended version of Azure Stack HCI so that European cloud providers can offer Microsoft applications and services on their infrastructures. This includes enhanced security updates (ESU), Windows 11-based virtual desktops and pay-as-you-go licensing. According to the press release, this will also rectify disruptions caused by the takeover of VMWare by Broadcom. Although Amazon Web Services is a CISPE member, it was excluded from the negotiations and will therefore not benefit from the new clauses.

Microsoft now has nine months to deliver Azure Stack HCI for Hosters or otherwise resolve software licensing issues, the CISPE announcement continues. In order to monitor and evaluate this, the industry association is setting up a "European Cloud Observatory" together with Microsoft. If Microsoft fails to meet its obligations, CISPE will resubmit its complaint to the EU Commission.

(anw)