UK Opens Second Microsoft Cloud Licensing Investigation
The UK regulator is launching a new probe into Microsoft cloud licensing. This investigation aims to ensure fair competition across the software market.
The competition regulator in the United Kingdom has launched a new investigation into the cloud licensing practices of Microsoft Corporation, marking a significant escalation in regulatory oversight. The Competition and Markets Authority (CMA) announced on Tuesday that it would re-examine the tech giant's business software ecosystem as part of a broader probe into the cloud market.
This decision follows previous findings that the dominance of Amazon.com, Inc. and Microsoft was potentially detrimental to competition. The CMA specifically highlighted concerns regarding Microsoft’s use of its enterprise software power, such as Windows Server and Microsoft 365, to restrict customer choice by charging additional fees when those services are run on rival cloud platforms. These practices are also under scrutiny by antitrust authorities in the United States and the European Union.
In the current market landscape, Amazon and Microsoft each maintain a share of approximately 30% to 40% in cloud services, including networking and storage. Alphabet Inc. remains the third main provider, holding a smaller market share of 5% to 10%. The CMA noted that the new investigation would allow it to designate Microsoft with a strategic market status, enabling more targeted interventions in software licensing.
CMA chief executive Sarah Cardell emphasized the regulator's commitment to achieving rapid results for consumers.
\"The regulator was acting in a flexible, pragmatic way to deliver real impact, as quickly as possible for UK customers.\"
Cardell added that while progress has been made regarding egress fees and interoperability, further action is expected from the major providers in the coming months. Microsoft has responded by stating that its recent changes focus on reducing friction for data movement and switching between services. Brad Smith, Microsoft’s vice chairman and president, addressed the commitment to flexibility.
\"The changes address the CMAs commitment to ensuring that UK customers can continue to move, deploy, and operate their workloads in the clouds of their choice with confidence, flexibility, and ever reduced friction.\"
Amazon also noted that its efforts regarding multicloud adoption and data portability have formalized its commitment to customer choice, as the industry faces increasing pressure to improve data portability.
