Google Cloud Platform has lodged its first-ever antitrust complaint against Microsoft with the European Commission, alleging unfair cloud computing practices that stifle competition and increase costs for customers.
Filed on Tuesday, the complaint accuses Microsoft of exploiting its dominance in desktop operating systems to lock customers into its Azure cloud services.Google claims this strategy reduces choice and inflates prices in the cloud computing market.
“We believe this regulatory action is the only way to end Microsoft vendor lock-in and for customers to have a choice and create a level playing field for competitors,” said Amit Zavery, Vice President and head of Google Cloud Platform.
At the heart of the dispute are Microsoft’s software licensing policies, which Google alleges are anti-competitive. According to Zavery, customers face a 400% markup when running Windows Server on non-Azure clouds compared to Azure deployments.
“Microsoft’s strategy is simple. It leverages a software monopoly to lock customers into Azure,” Zavery stated. He emphasised the urgency of the situation, noting that many workloads are still on-premises and poised to move to the cloud.
The complaint draws on research suggesting European businesses and public sector organisations pay up to €1 billion annually to run Microsoft software in non-Azure cloud environments.
Microsoft defended its position, with president Brad Smith stating that the company’s previous deal “resolved past concerns and brought even more competition to the sector.”
A Microsoft spokesperson added: “Microsoft settled amicably similar concerns raised by European cloud providers, even after Google hoped they would keep litigating. Having failed to persuade European companies, we expect Google similarly will fail to persuade the European Commission.”
The European Commission confirmed receipt of the complaint, stating it would “assess under our standard procedures.”
This legal move comes as Google trails behind Microsoft and Amazon Web Services in the global cloud computing market. It follows a similar complaint filed by AWS-backed trade group CISPE in 2022, which was resolved earlier this year through a confidential settlement.
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