Microsoft’s cloud computing business is being investigated by EU antitrust authorities.
Belgium (Reuters)- Brussels EU antitrust investigators are questioning Microsoft’s (MSFT.O) competitors and customers about the company’s cloud business and licencing arrangements, according to a questionnaire obtained by Reuters, in a step that may result in a formal probe and fresh scrutiny of the US software giant.
In the preceding decade, the European Commission fined Microsoft a total of 1.6 billion euros ($1.8 billion) for violating EU antitrust regulations and failing to comply with its order to cease anticompetitive behaviour.
It’s been a while since the European Union’s competition watchdog looked into Microsoft’s cloud strategy, but now NextCloud, OVHcloud (OVH.PA), and two other businesses have raised concerns about Microsoft’s cloud strategy.
“According to the query, “Microsoft may be abusing its potentially dominant position in some software industries to stifle competition in particular cloud computing services,” the query said.
Regulators questioned whether the conditions of Microsoft’s licence agreements with cloud service providers allow for effective competition.
They also want to find out if businesses need Microsoft’s operating systems and productivity tools to compete well.
Additionally, companies were questioned about the variations in licence costs and commercial conditions between their licencing agreements with cloud service providers and another programme through which they bundle and indirectly resell Microsoft’s cloud services.
Another area of attention was possible technological constraints associated with cloud storage services provided via businesses’ cloud infrastructure.
In an emailed statement, Microsoft stated, “We are always reviewing the best ways to serve partners and make Microsoft products accessible to consumers across all settings, including those provided by other cloud providers.”
Margrethe Vestager, the EU’s antitrust director, said earlier this week that she didn’t think cloud computing was a bad idea right now because of Europe’s Gaia-X project.