HomeGame GuidesMicrosoft makes $21.7 million deal with European cloud firms to try to...

Microsoft makes $21.7 million deal with European cloud firms to try to avoid EU investigation

Published on

A new settlement between Microsoft and a group of European cloud server companies may help the company prevent the European Union from launching a formal investigation into Microsoft’s cloud division.

Reuters The Association of Cloud Infrastructure Service Providers in Europe (CISPE) is reported to have received a €20 million ($21.7 million) settlement from Microsoft. The CISPE includes one of Microsoft’s biggest cloud competitors, Amazon Web Services, as one of its companies, along with a number of smaller cloud companies.

In the past, the CISPE sent a complaint to the European Union’s regulatory body, the European Commission, alleging that Microsoft’s cloud business practices adversely affect competition from other companies.

TechCrunch It is reported that in addition to the financial settlement, Microsoft has agreed to allow CISPE members to run Microsoft’s software. He states:

This includes collaboration between all parties to release an “enhanced version of Azure Stack HCI” for European cloud providers, which will offer features such as multi-session virtual desktop infrastructure based on Windows 11; Free Extended Security Updates (ESU); and pay-as-you-go licensing for SQL Server.

Microsoft President Brad Smith said in a statement:

Having worked with CISPE and its European partners for over a year, I am pleased that we have not only resolved their past concerns, but also worked together to define a way forward that brings even more competition to the cloud computing market in Europe and beyond.

Microsoft will have nine months to implement this new software collaboration.

While this arrangement was made by Microsoft so that it could avoid a formal investigation of its cloud business by the European Commission, this deal with CISPE does not include Amazon Web Services. While the company is part of CISPE, it was not part of the talks with Microsoft. An AWS spokesperson told Reuters:

We continue to stand with the growing number of customers, suppliers and regulators around the world who are calling on Microsoft to end its discriminatory practices for all customers.

We’ll have to see if this new deal between Microsoft and CISPE makes a big enough difference for the European Commission to stop them from opening an investigation.

Latest articles

More like this