Reuters has reported that both Google and Amazon have submitted letters to the CMA, the competition watchdog of the United Kingdom, requesting an investigation into whether Microsoft Azure is impeding competition in the cloud market by limiting the use of software from other brands, through the enforcement of Microsoft’s software licenses.
For example, if customers already have software licenses from Microsoft, such as Windows Server or SQL Server, and they want to use it on other cloud platforms, they would need to purchase separate licenses. However, if they choose to use Azure, they can utilize their existing licenses without any additional restrictions.
Google’s letter states that Microsoft’s software license limitations prevent organizational customers from migrating to other cloud platforms, even if they offer lower pricing. Amazon has previously highlighted this issue in 2022 as well, and Microsoft itself has announced plans to broaden its software licenses for customers in Europe, although these efforts have yielded limited results.
TLDR: Google and Amazon have raised concerns to the CMA regarding Microsoft Azure’s limitations on using software from other brands, with the enforcement of Microsoft’s software licenses. This affects customers’ ability to migrate to other cloud platforms, even if they are more cost-effective. Efforts to address these limitations have not yet led to significant changes.
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