Google files complaint in Brussels against Microsoft's cloud business

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Google has filed an antitrust complaint against Microsoft in Brussels, claiming that the big tech rival is using unfair cloud computing practices that have limited choice and increased prices.

The US search engine giant accuses Microsoft of using its Windows software to tie customers to Azure cloud services and thus make it more difficult for them to switch to alternatives.

In a complaint to the European Commission seen by the Financial Times, Google claims that Microsoft “exploits its customers' dependence on products such as Windows software” by imposing “heavy penalties” for using competing cloud providers.

In a letter to antitrust regulators, Google said that a Microsoft customer who wanted to move its Windows software to the Azure cloud could do so “essentially for free,” while a customer who wanted to do the same with a cloud competitor “would have to pay a 400 percent premium to purchase new Windows Server licenses.”

Amit Zavery, vice president of Google Cloud, told reporters in Brussels on Wednesday that the search giant wants EU regulators to force Microsoft to lift restrictions on its use of rivals' cloud services. “If I've already paid for these licenses, I should be able to use them wherever I want,” he said.

A complaint does not guarantee a formal investigation, which would take years. The move comes as Google lags behind Microsoft and Amazon Web Services in a bitter battle for the global cloud computing market.

Google's complaint came after Microsoft successfully struck a multimillion-dollar deal with a group of rival cloud providers in July to avoid a formal investigation in Brussels into its market dominance.

Microsoft President Brad Smith said his company's deal addressed previous concerns and created even more competition in the industry.

Microsoft said it had “amicably resolved similar concerns from European cloud providers, although Google had hoped they would continue to litigate. Having failed to convince European companies, we expect Google will also fail to convince the European Commission.”

Google also expressed concern in its complaint, sent to the EU's powerful competition authority on Tuesday, that Microsoft is degrading the user experience of customers who move their Windows software to rival cloud providers.

Microsoft was also accused of discriminatory practices because the fines only apply to Azure's main competitors: AWS, Google Cloud Platform and Alibaba Cloud.