Google Cloud Blog
Follow
The global harms of restrictive cloud licensing, one year later
Google Cloud filed a complaint against Microsoft's anti-competitive cloud licensing a year ago, citing penalties for using competitors' clouds. Microsoft continues these restrictive policies, actively pushing customers to its Azure platform. These practices are intensifying, with new changes preventing managed service providers from hosting certain workloads elsewhere. Regulators, like the UK's CMA, are investigating and find these policies detrimental to customers, competition, and innovation. Globally, multiple authorities are scrutinizing Microsoft's conduct. Restrictive licensing imposes significant financial penalties, such as a 400% markup on legacy workloads moved to competing clouds. This lack of competition costs businesses billions annually and forces them into a less secure, single point of failure. The urgency to address this is heightened by the rapid adoption of AI technologies on the cloud. Without intervention, Microsoft Azure has significantly outpaced competitors in customer acquisition. Ending these practices could unlock substantial economic benefits and drive future innovation. Regulators must act to ensure fair competition and foster digital transformation.