Google Cloud EMEA

Creating a fair and open cloud

How Microsoft’s anticompetitive licensing practices harm European customers, vendors, and cloud markets

Sep 25, 2024

Microsoft leverages a Windows Server software monopoly to lock customers into Azure. Regulatory action is the only way to end Microsoft’s vendor lock for customers and level the playing field for competitors. Google Cloud is filing a complaint with the European Commission.

The harms of Microsoft’s vendor lock-in are clear:

  • For organizations. Less choice and higher costs. Migrate on-premise licenses to Azure or pay the 400% markup. The customer owns the software, yet Microsoft still decides what cloud it can run.
  • For security and reliability. Forced over reliance on Azure creates a single attack surface and single point of failure. U.S. Cyber Safety Review Board found “Microsoft’s security culture was inadequate and requires an overhaul”.
  • For competition. Microsoft undermines competition on the merits. The U.K. Competition and Market Authority found Microsoft acquired more than 60-70% of all new U.K. customers in 2021 and 2022. 

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Research found European businesses and public sector organizations pay up to a billion Euros a year in Microsoft licensing penalties.

Microsoft locks in customers

1

Microsoft’s strategy is simple: Leverage a Windows Server software monopoly to lock customers into Azure.

2

Regulatory action is the only way to end Microsoft’s vendor lock for customers and level the playing field for competitors.

3

Google Cloud is filing a complaint with the European Commission.


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