AWS and Google have prompted the UK's Competition and Markets Authority (CMA) to intervene in Microsoft's pricing of software licenses essential for cloud services. They argue that the elevated fees for using Microsoft's products in their clouds create competitive disadvantages. The CMA has acknowledged that Microsoft's practices could be detrimental to market competition. Microsoft, in response, labeled the request as unprecedented, suggesting it infringes on their rights and benefits only AWS and Google at the expense of fair licensing practices.
AWS and Google are urging the UK competition regulator to intervene against Microsoft, claiming its software pricing is inhibiting cloud competition and hurting vendors.
Microsoft describes AWS and Google’s request to the CMA as extraordinary, stating it undermines their intellectual property rights while benefitting only the two competition complainants.
The CMA found that Microsoft has both the power and motivation to hinder AWS and Google, indicating its conduct harms overall competition in the cloud market.
As Microsoft states, these licensing costs for non-Azure clouds can be up to four times higher, putting significant strain on AWS and Google.
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