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1Clear out junk files and repair common Windows errors2Fix the driver behind crashes, sound loss and screen glitches3Repair Windows errors before they cause bigger problemsAWS and Google argued that Microsoft’s software licensing made it harder and more expensive to compete for customers using Microsoft products on rival clouds. Microsoft disputed that assessment. The UK Competition and Markets Authority (CMA) later found that Microsoft’s licensing practices adversely affected AWS and Google’s competitiveness, but its finding was about competition—not a ruling that Microsoft committed a criminal offence or that every customer paid more.
What the 2024 dispute was about
The headline refers to evidence-gathering sessions the CMA held with AWS, Microsoft and Google in July 2024. The CMA published summaries on 16 September 2024 as part of its investigation into UK public-cloud infrastructure services. AWS and Google challenged Microsoft’s position that its licensing practices were not materially harming rival cloud providers. The hearing summaries were one stage of the inquiry, not its final conclusion. The CMA case page records the investigation and its documents; Computer Weekly’s September 2024 report covered the hearing summaries.
How Microsoft licensing can affect a cloud choice
A cloud comparison is not just a comparison of virtual-machine prices. A business running Microsoft software also needs to account for the software rights and costs that apply on its chosen cloud. Microsoft’s licensing terms can differ between Azure and rival providers. The CMA examined whether those differences, and the availability of some products, gave customers a price or quality advantage when using Azure.
The software at issue included Windows Server, including Active Directory functionality; SQL Server; Windows 10 and Windows 11; Visual Studio; and Microsoft productivity suites. The CMA found that Microsoft did not make certain products available to AWS and Google through equivalent licensing arrangements. That is not the same as saying that all Microsoft software was blocked from every rival cloud.
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For example, a business considering Windows Server or SQL Server on AWS needs to look beyond the AWS compute charge: it must establish which licensing rights apply, whether its existing licence can be used in that environment, and what support and other costs are involved. The answer can depend on the product, edition, agreement, licence date and cloud-hosting arrangement. A customer should not assume that a licence is portable—or that it is not—without a product-specific assessment.
What Google argued
Google said Microsoft could use its strength in business software to disadvantage AWS and Google Cloud in infrastructure services. In its 2024 response to the CMA’s licensing-practices working paper, Google set out objections before the regulator issued provisional findings. In its later response to the provisional decision, Google argued that Microsoft’s licensing partially foreclosed AWS and Google from competing for customers using Microsoft software, reducing choice for UK cloud customers. These were Google’s submissions, not findings the CMA had yet made. See Google’s 24 July 2024 response and its response to the provisional decision.
What AWS argued
AWS separately argued that Microsoft’s licensing could raise the cost of providing Microsoft-based workloads on rival clouds, limiting AWS’s ability to compete on price and affecting customer choice before a provider was selected. Its broader concern was that Microsoft’s position in business software could give it leverage in cloud infrastructure competition. AWS and Google shared concerns about licensing, but they were separate commercial rivals with their own submissions and incentives; their arguments should not be treated as interchangeable or as independent regulatory findings.
How Microsoft responded
Microsoft challenged the factual basis and economic interpretation of the CMA’s provisional analysis. It argued that the report did not reflect how cloud computing works in practice, relied too heavily on hypothetical scenarios, and overstated the competitive effect of licensing. Microsoft also pointed to AWS’s continued strength, said UK customers had not raised widespread complaints about cloud competition, and argued that AWS sought favorable access to Microsoft software without offering Microsoft equivalent access to AWS products. Microsoft’s case was that the market remained competitive and the alleged harm had not been established. Its arguments are set out in its response to the provisional decision; its earlier response to the licensing working paper is listed on the CMA case page.
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What the CMA found, and when
Provisional findings in January 2025
On 28 January 2025, the CMA provisionally found that Microsoft’s licensing practices could partially foreclose AWS and Google and harm competition in UK cloud services. Its provisional analysis said Microsoft had significant market power in several relevant software products, that the products mattered as inputs to cloud services, and that licensing differences could make it harder for rivals to compete, enter or expand. These were provisional findings, not the final decision. The CMA published a provisional decision report and a summary.
Final decision in July 2025
On 31 July 2025, the CMA published its final decision. It found significant price and/or quality differences between using relevant Microsoft software on Azure and using it on AWS or Google Cloud; that AWS and Google passed through at least some Microsoft software costs to customers; and that Microsoft did not make certain products available to the rivals through equivalent licensing arrangements. The CMA also found that some Microsoft products were used disproportionately on Azure. It concluded that Microsoft’s licensing practices adversely affected AWS and Google’s competitiveness and reduced competitive pressure on Microsoft in UK cloud services markets. The findings are set out in the CMA final decision report.
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This was a market-investigation finding about an adverse effect on competition. It was not a court judgment that Microsoft had committed a criminal offence, a damages award, a finding that every customer paid more, or a universal customer entitlement to use every Microsoft product on any cloud. The CMA also examined other cloud competition concerns, including technical barriers to switching and multicloud use and data-egress fees; those issues are distinct from software licensing.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What cloud buyers should check
The CMA’s finding concerns market-wide competitive effects. The cost and practical impact for an individual business depend on its workload and agreements. Before comparing providers, procurement and IT teams can work through these checks:
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Clear out junk files and repair common Windows errorsFree Scan →Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Repair Windows errors before they cause bigger problemsFix Now →- Inventory Microsoft-dependent workloads, including Windows Server, SQL Server, identity services, developer tools and productivity software.
- For each workload, identify the exact product, edition, licence terms and agreement. Confirm in writing whether the licence can be used on the proposed cloud and what support applies.
- Compare the full workload cost—not just compute—alongside software licensing, support, any applicable enterprise-agreement terms and operational requirements.
- Test identity, networking, management and application dependencies. A multicloud strategy does not by itself make workloads easy to move.
- Include migration, re-architecture, data-egress and exit costs in the comparison, and assess how much the workload depends on provider-specific services.
- Use provider calculators for infrastructure estimates, then add the relevant software and support costs. Obtain specialist licensing advice where the agreement or hosting arrangement is unclear.
Microsoft-heavy workloads may make Azure economically attractive for some organizations, while AWS or Google Cloud may suit estates built around other platforms and services. Neither conclusion follows automatically from the CMA decision. The useful question for a buyer is whether the licensing and switching costs for its own workloads materially change the comparison.
Is the CMA investigation still open?
No. The CMA opened its cloud-services market investigation on 5 October 2023 following Ofcom’s referral and closed it when the final decision was published on 31 July 2025. The CMA recommended that its Board prioritize possible Strategic Market Status investigations into Microsoft and AWS under the UK digital-markets regime; that recommendation was further regulatory work, not a remedy imposed through the closed market investigation. The investigation and its status are recorded on the CMA case page.
As of 2026, the CMA is conducting a separate Strategic Market Status investigation into Microsoft’s business-software ecosystem, considering customer choice, alternatives and switching. It is not a continuation of the cloud market investigation. The investigation page and launch announcement describe that separate work.
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