Microsoft in talks to end trade body's cloud computing complaint

BRUSSELS, Feb 07 (Reuters): Microsoft is in talks with CISPE in an attempt to resolve its European Union antitrust complaint about the US software giant's cloud computing licensing practices, the trade group said on Wednesday.

Working the issue out bilaterally could help Microsoft stave off a possible lengthy EU investigation that could lead to a possible fine and an order to change its business practices. CISPE, whose members include Amazon and 26 small EU cloud providers, filed a complaint with the European Commission in late 2022 alleging that Microsoft's new contractual terms imposed on Oct. 1 were harming Europe's cloud computing ecosystem.

Microsoft, which ranks behind market leader Amazon in the cloud computing sector but ahead of Alphabet's Google, amended its licensing terms in mid-2022 after rivals in Germany, Italy, Denmark and France took their grievances to the EU competition watchdog.

However, Amazon, Google, Alibaba and Microsoft's own cloud services are excluded from the changes.