Microsoft and CISPE’s settlement in long-running cloud antitrust dispute proves controversial

The trade body known as the Cloud Infrastructure Service Providers in Europe (CISPE) has come under fire for reaching a $22m deal with Microsoft to drop its anti-trust complaint. This agreement includes Microsoft committing to offering an enhanced version of Azure Stack HCI to European cloud providers within nine months. The collaboration aims to provide European cloud providers with access to Microsoft applications and services on their local infrastructure. In return, CISPE will withdraw its formal complaint filed with the European Commission. However, if Microsoft fails to fulfill its commitments, CISPE reserves the right to reinstate the complaint. A European Cloud Observatory will be established to monitor the development of the product. CISPE members, including Microsoft, will be part of this observatory. The agreement also prohibits CISPE from initiating or supporting complaints about Microsoft’s anti-competitive behavior in other countries. The deal has received mixed reactions, with some parties, such as the Coalition for Fair Software Licensing (CFSL), criticizing it for not meeting the standards set by CISPE during negotiations. Despite the differing opinions, both CISPE and Microsoft believe that the agreement will benefit European cloud providers and customers by promoting competition in the market. Cloud providers and consumers worldwide will bear the consequences of a deal that appears to be nothing more than Microsoft influencing a select few, granting them an unfair advantage over others.

Mark Boost, CEO of CIVO, expressed concerns about the lack of transparency surrounding the deal between Microsoft and CISPE. He emphasized the need for CISPE to disclose more details to maintain credibility, as the current lack of transparency could harm the organization and its members.

Boost criticized the exclusivity of the deal, highlighting that while CISPE members in the EU may benefit in the short term, the broader cloud industry and its customers will suffer in the long run. He emphasized the need for fundamental changes in the cloud market to ensure fair competition and better outcomes for customers.

Boost called for regulators, including the CMA, to demand complete transparency from Microsoft and CISPE regarding the deal’s details. He urged for action to address the unchecked power of hyperscalers, opaque pricing practices, and anti-competitive software licensing in the cloud market.

In conclusion, Boost stressed the importance of decisive action to reform the cloud market and provide customers with better options and fairer practices. The CMA’s investigation presents an opportunity to drive change and create a more competitive and customer-centric cloud landscape.