There was an agreement. CISPE and Microsoft announced a settlement in July 2024, then a further licensing agreement in July 2025. The original “no agreement” description is therefore inaccurate. The dispute concerned Microsoft software licensing on European cloud providers’ infrastructure, and the eventual solution shifted from a planned Azure product to existing licensing programs.
What the dispute was about
CISPE said it filed a competition complaint with the European Commission in November 2022. The complaint concerned how Microsoft software could be licensed when European cloud providers hosted customers’ workloads. It was an enterprise-licensing and competition dispute, not a consumer cloud-storage disagreement.
In its 11 July 2024 announcement, CISPE said it and Microsoft had settled the matter. CISPE agreed to withdraw its complaint, while Microsoft committed to changes and a nine-month implementation period. The announcement proposed an enhanced Azure Stack HCI offering for European hosters and independent monitoring by the European Cloud Observatory, later referred to as ECCO.
What the original settlement was supposed to deliver
The product-based plan described in the 2024 settlement included several features intended to make Microsoft workloads more practical for independent European providers:
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- Multi-session virtual desktop infrastructure based on Windows 11.
- Free Extended Security Updates.
- Pay-as-you-go SQL Server licensing.
- An enhanced Azure Stack HCI route for eligible hosters.
These were commitments and plans described by the parties and monitored by ECCO; they should not be read as a finding that Microsoft had already violated competition law.
Why the approach changed
ECCO’s first report, published in February 2025, assigned Microsoft an overall amber status. It described unresolved questions about member eligibility, hoster product development and support under the Services Provider License Agreement (SPLA). ECCO also said the parties had not agreed on the scope of some technical requirements. Microsoft disputed whether certain features requested by members were commitments under the memorandum of understanding.
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In May 2025, ECCO reported that Azure Local would not deliver the full feature set contemplated by the initial agreement. The parties therefore agreed to move from the product-first phase to alternatives using existing Microsoft programs. ECCO said Microsoft was to submit proposals by 10 July 2025.
What the July 2025 licensing agreement provided
CISPE announced a further agreement on 18 July 2025. Its description said qualified CISPE members and eligible European providers could obtain CSP-Hoster access and offer Microsoft software on a pay-as-you-go basis.
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Outbyte Driver Updater FREEFix the driver behind crashes, sound loss and screen glitchesFind Drivers →Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →| Element | What was described | Important qualification |
|---|---|---|
| Windows Server | Pay-as-you-go licensing through the arrangement | Only qualified providers and eligible participants can use the program. |
| SQL Server | Pay-as-you-go licensing | Availability depends on program eligibility and current terms. |
| Customer privacy | Additional privacy protections | The announcement describes safeguards but does not establish identical implementation by every provider. |
| Microsoft 365 Local | Potential access for participating providers | Conditional on general availability in Microsoft’s Cloud Solution Provider program. |
| SPLA | Five-year continuation and competitiveness guarantee described by ECCO | This is ECCO’s account of the October 2025 agreement and remains subject to monitoring. |
CISPE Secretary General Francisco Mingorance called the 2025 deal “a significant breakthrough in our long-standing efforts to ensure a level playing field.” That is CISPE’s characterization, not an independent adjudication.
What ECCO said about the status
ECCO’s third report, published on 29 October 2025, said the second agreement had been reached on 10 July 2025 and assigned Microsoft an overall green status. The rating was conditional on delivery of the promised features and reflected ECCO’s monitoring framework; it was not a court judgment that every issue had permanently disappeared.
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The report also identified boundaries. The agreement did not cover new bundling strategies or the integration of artificial intelligence with productivity software or cloud services. The latest detailed ECCO report identified here is dated 29 October 2025, so later implementation or uptake should not be assumed without a newer monitoring update.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What enterprises should verify before choosing a provider
The agreements may matter to European organizations comparing cloud infrastructure providers, but eligibility and availability are not universal. Before signing, verify:
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- Whether the provider is a qualified CISPE member or otherwise eligible for CSP-Hoster.
- Which Windows Server and SQL Server editions are available on a pay-as-you-go basis.
- How licensing charges are calculated alongside infrastructure, support and data-transfer costs.
- Where workloads and customer data will be hosted and which privacy safeguards are contractually binding.
- Whether Microsoft 365 Local is generally available through the provider’s Microsoft Cloud Solution Provider arrangement.
- Whether the provider can support the required Windows, SQL Server, virtual-desktop and security-update features today, rather than only under a future roadmap.
- Which terms are guaranteed for the five-year period described by ECCO and which depend on continuing program rules.
The public announcements do not provide a current price list or prove that every European provider has access. Confirm current qualification rules, product availability and commercial terms with both the provider and Microsoft.
How the 2026 EU cloud proceeding differs
On 25 June 2026, the European Commission announced a preliminary view that Amazon’s AWS and Microsoft’s Azure should be designated as gatekeepers for their cloud services under the Digital Markets Act. The Commission said both companies could respond before final decisions were made.
That proceeding is separate from the CISPE settlement. A preliminary DMA view is not a final designation, and it does not reopen or decide the claims addressed by the CISPE-Microsoft agreements.
Bottom line
“No agreement” is not an accurate description of the documented status. The parties settled in July 2024 and reached a second licensing agreement in July 2025. Because Azure Local did not deliver the full planned feature set, the practical route moved to CSP-Hoster and other existing-program licensing, including pay-as-you-go Windows Server and SQL Server for eligible providers. ECCO later rated Microsoft green overall, while continuing to monitor delivery and excluding bundling and AI-integration issues from the deal.
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