Google files new complaint to European Commission against Microsoft over shady cloud practices and “vendor lock”

Google has lodged a complaint with the European Commission against Microsoft, accusing the tech giant of engaging in anti-competitive practices in the cloud computing market. The complaint, filed on September 25, 2024, alleges that Microsoft exploits its dominant Windows Server operating system to prevent competition, thereby stifling innovation and limiting customer choice.

Google’s complaint against Microsoft to the European Commission

According to Google, Microsoft charges customers a 400% mark-up to run Windows Server on rival cloud computing operators unless they use Azure, Microsoft’s own cloud platform. This practice, Google argues, is a clear example of anti-competitive behavior, designed to lock customers into Azure and prevent them from using alternative cloud providers.

Furthermore, Google claims that users of rival cloud systems receive later and more limited security updates, which can leave them vulnerable to cyber threats. This, Google says, is a deliberate attempt by Microsoft to create a “vendor lock” that makes it difficult for customers to switch to other cloud providers.

Google’s complaint is not the first time Microsoft has faced scrutiny over its cloud practices. In July, Microsoft settled a 20-million-euro antitrust complaint with the Cloud Infrastructure Services Providers in Europe (CISPE), a group of cloud providers that includes Amazon Web Services and Google Cloud Platform. However, the settlement excluded Amazon Web Services and Google Cloud Platform, drawing criticism from both companies.

Microsoft has responded to Google’s complaint, stating that it has resolved similar concerns with European cloud providers and suggesting that Google will not succeed in persuading the European Commission. However, Google argues that regulatory action is necessary to end Microsoft’s “vendor lock” and ensure a competitive cloud market.

The European Commission has not yet commented on the complaint, but it is likely to investigate the allegations and take action if necessary. The complaint is the latest in a series of antitrust challenges against Microsoft’s cloud practices, and it highlights the growing tensions between tech giants in the cloud computing market.

In a statement, Amit Zavery, Google Cloud Vice President, said, “The time for action is now. The cloud market will become increasingly restrictive if immediate measures are not taken.” Google’s complaint is a clear indication that the company is willing to take on Microsoft and fight for a more competitive cloud market.