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CISPE

Microsoft May Avoid a Formal EU Antitrust Case Over Cloud Licensing—but Azure Faces Wider Scrutiny

Microsoft’s settlements have lowered the immediate risk of a conventional EU antitrust case over cloud licensing, but they are not a clearance. The Commission’s preliminary DMA position and broader cloud-market inquiry keep Azure under scrutiny.

By TheFinanceBase Team 6 min read
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Microsoft has lowered the immediate risk of a conventional EU antitrust case over cloud-software licensing: the European cloud-provider association CISPE settled and withdrew its complaint, and Google later withdrew its own. That is not an EU finding that Microsoft’s past practices were lawful or a blanket clearance. The European Commission is separately examining cloud competition under the Digital Markets Act (DMA), and in June 2026 it announced a preliminary position that Azure should be designated a gatekeeper.

What Microsoft may avoid—and what it has not avoided

The defensible reading of the current record is that Microsoft may avoid a near-term, conventional antitrust prosecution focused on the complaints that CISPE and Google withdrew. A complainant’s withdrawal, however, does not itself close a Commission investigation or establish that the disputed conduct was lawful. No Commission decision clearing Microsoft of the allegations is identified in the published record.

The distinction matters because the Commission’s current cloud work is framed around the DMA, not as a publicly announced Article 102 infringement charge over Microsoft’s licensing terms. The two routes have different questions and consequences: a DMA gatekeeper designation is not an antitrust conviction, while avoiding a conventional antitrust charge does not exempt a company from DMA obligations.

What the cloud-licensing complaints alleged

CISPE, a trade association representing European cloud infrastructure providers, filed a competition complaint against Microsoft in November 2022. It alleged that Microsoft used its position in business software—including Windows Server, SQL Server and Microsoft 365-related products—to steer customers toward Azure. According to CISPE, licensing Microsoft software on competing cloud infrastructure could be more expensive or less flexible, making it harder for customers to move workloads and for rival providers to compete. CISPE’s complaint summary describes those allegations; they should not be mistaken for Commission findings.

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The concerns extended beyond the price of a licence. CISPE also pointed to restrictions affecting workload mobility and multitenant or multi-session use, as well as alleged bundling, tying and self-preferencing. For customers, the concern was that a software choice could influence where infrastructure ran; for rival providers, that Microsoft’s licensing could make Azure a more attractive or less costly place to run Microsoft workloads.

How the CISPE settlement changed the dispute

Microsoft and CISPE announced an agreement on July 11, 2024. CISPE said it would withdraw its complaint in exchange for commitments addressing claims raised by its members. The initial package included development of an enhanced Azure Stack HCI product for European providers, a nine-month implementation timetable, an oversight mechanism called the European Cloud Competition Observatory, and reimbursement of CISPE’s litigation and campaign costs. CISPE’s settlement announcement sets out the arrangement.

The agreement was not a market-wide remedy. CISPE said AWS, Google Cloud and Alibaba Cloud were excluded from its benefits and were not bound by its terms. The practical beneficiaries were qualifying CISPE members, subject to the agreement and applicable program conditions—not every cloud provider or every customer running Microsoft software outside Azure.

Why the first remedy did not end the licensing question

The initial product-based remedy did not fully resolve implementation. In a May 2025 monitoring report, CISPE said the proposed approach had not delivered the full set of features contemplated and that the parties had moved away from the original Azure Local product path toward alternative commercially equivalent solutions. That account comes from CISPE’s oversight process, rather than a Commission finding. The report shows why a settlement announcement alone does not establish that each promised technical or commercial change was delivered.

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On July 18, 2025, CISPE announced further licensing reforms. Under the announced arrangement, qualified members could offer Microsoft software through Microsoft’s CSP-Hoster program using pay-as-you-go models for products including Windows Server and SQL Server. CISPE described the pricing as comparable with Azure and said the changes included stronger privacy provisions for customers using European cloud providers. CISPE’s announcement describes the terms at a high level; eligibility, supported products, deployment constraints and actual pricing depend on the applicable program terms. “Comparable” should not be read as proof of identical costs for every workload.

What Google’s complaint withdrawal means

Google filed a complaint with the Commission in September 2024. It argued that Microsoft’s licensing practices made it harder and more expensive for customers to move workloads to rival clouds, including Google Cloud and AWS. The Associated Press reported on the complaint.

Google withdrew the complaint in November 2025 after the Commission opened its broader DMA cloud investigations. That procedural choice is not an endorsement of Microsoft’s licensing model: Google said the Commission’s wider process would examine relevant market issues while maintaining its concerns. ITPro reported on the withdrawal.

What the Commission’s DMA process is examining

On November 18, 2025, the Commission opened three DMA market investigations: whether AWS should be designated a gatekeeper, whether Microsoft Azure should be designated a gatekeeper, and whether the DMA can effectively address cloud practices that may restrict competition and fairness. The third inquiry extends beyond one company’s licensing terms to cloud-market issues such as switching barriers, interoperability, contractual conditions and financial terms. The Commission’s announcement describes the scope.

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On June 25, 2026, the Commission announced a preliminary position that Azure and AWS should be designated as DMA gatekeepers. It pointed to their positions as the EU’s largest and second-largest cloud-computing services, their role as gateways between businesses and customers, entrenched user bases and ecosystems, and apparent lock-in effects and high switching costs. The Commission also cited the growing importance of AI tools and partnerships in cloud procurement. This is a preliminary position—not a final designation, an infringement decision, a fine or a finding that Microsoft violated Article 102. The Commission’s June announcement sets out its reasoning.

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What customers and providers should check

The licensing changes may improve the economics of running some Microsoft software with some European providers, but buyers should verify their own arrangement rather than infer universal parity from a trade association’s announcement.

  • Provider eligibility: Confirm in writing whether the provider qualifies for the relevant CISPE and Microsoft program. The 2024 settlement did not extend to AWS, Google Cloud or Alibaba Cloud.
  • Product and deployment: Check the specific Microsoft product, licence, virtualization model and whether the workload is single-tenant or multitenant. The announced pay-as-you-go changes name Windows Server and SQL Server; they do not establish identical terms for all Microsoft products.
  • Total cost: Compare the software charge alongside infrastructure, network, data-egress, migration and support costs. More favorable licensing does not eliminate proprietary API dependencies, identity and directory ties, management-tool dependencies, application refactoring or staff retraining.
  • Contract terms: Review renewal and license-mobility provisions, privacy commitments, migration rights and any conditions attached to credits or commercial offers. Obtain a written licensing assessment from Microsoft or an authorized licensing partner for the proposed deployment.
  • Portability in practice: Ask what data, applications and operational tooling can be moved, how long migration would take, and what it would cost. A lower software licence price is not the same as technical portability.

For providers, the key commercial question is whether the revised program is available to them and supports the products and deployment models their customers need. For buyers, a quote tied to a specific workload and contract is more informative than a general claim of licensing parity.

What happens next

The Commission’s July 1, 2026 cloud stakeholder roundtables addressed interoperability and technical features, financial conditions for procuring cloud services, and contractual conditions between customers and providers. The Commission’s roundtable notice describes those discussions. Its cloud-market investigation is expected to produce a final report by May 2027, according to its roundtable information.

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The final gatekeeper process and market-investigation findings will determine how the DMA applies to cloud services. The Commission’s published Q&A says a designated service would have six months to comply; the applicable timing and obligations for Azure must be read against any final designation and the rules then in force. The Commission’s DMA Q&A provides the general timing context.

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