"That behaviour concerns its widely criticised practice of charging customers more for wanting to run and host its software (namely Windows Server) in competing cloud environments. It is claimed the tactic can make it cost-prohibitive for enterprise cloud users to run Microsoft's software anywhere but on the software giant's own public cloud platform Azure, which could potentially give it an unfair advantage when it comes to building its share of the cloud infrastructure market."
"The CMA's 637-page investigative report devoted more than 170 pages to discussing Microsoft's cloud licensing habits in detail, and concluded the company's practices are "adversely impacting the competitiveness of AWS and Google [specifically] in the supply of cloud services" and "reducing competition in [the] cloud services market". The CMA also stated that Microsoft's licensing practices, "in combination with other features we have identified", are further limiting the choice and "attractiveness" of alternative products and suppliers."
Regulators and trade bodies have scrutinised hyperscalers for potential anti-competitive conduct in the multibillion-pound cloud market. Microsoft charges higher fees for running Windows Server on competing cloud platforms, which can make it cost-prohibitive for enterprises to host Microsoft software outside Azure. Ofcom flagged the issue in its October 2023 UK cloud market study, prompting a two-year CMA investigation that concluded in July 2025. The CMA's report found Microsoft’s licensing practices adversely impact the competitiveness of AWS and Google, reduce competition in the cloud services market, and, combined with other factors, limit choice and attractiveness of alternative suppliers.
Read at ComputerWeekly.com
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