CISPE Denies Settlement Nearing with Microsoft Over Antitrust Complaint

The European trade group CISPE has refuted claims that it is close to settling its antitrust complaint against Microsoft with the European Commission.

This complaint centers on Microsoft’s cloud computing licensing practices, which CISPE argues are detrimental to the European cloud ecosystem.

Background of the Complaint:

In late 2022, CISPE, representing members like Amazon and 26 smaller EU cloud providers, complained to the European Commission.

The complaint alleges that Microsoft’s revised contractual terms harm Europe’s cloud computing landscape, limiting customer choice and competition.

Politico Report and CISPE Response:

Earlier, Politico reported that Microsoft was nearing a multi-million euro agreement with CISPE to withdraw the complaint. However, CISPE promptly denied these claims.

“These rumors are incorrect,” the Cloud Infrastructure Services Providers in Europe stated, adding that discussions with Microsoft are ongoing and no agreement has been reached yet.

Current Status of Discussions:

CISPE emphasized that any potential offer from Microsoft would require approval from its General Assembly, which includes 34 European cloud providers across over 14 EU Member States. This broad-based approval is essential before any settlement can be finalized.

Politico’s report also mentioned that CISPE members had not yet accepted the deal, and separate payments might be made to individual companies. However, these details remain speculative as no formal agreement has been confirmed.

Response from Microsoft and Other Parties:

Microsoft, Amazon, and the European Commission have not commented on the Politico report.

Previously, Reuters reported that Microsoft was in talks with CISPE to resolve the antitrust issues, indicating ongoing efforts to avoid a protracted EU investigation.

Implications of the Complaint:

CISPE’s complaint highlights concerns over Microsoft’s market practices, which it claims are damaging the European cloud ecosystem and limiting customers’ choices.

A bilateral resolution could help Microsoft avoid a lengthy investigation and potential penalties and compel changes to its business practices to foster a more competitive market environment.