LONDON, March 31 (Reuters) - Britain's competition regulator said on Tuesday it would launch a new investigation into Microsoft's business software ecosystem in May, including its use of software
Microsoft faces second major UK investigation over cloud licensing
UK Competition Regulator Launches New Probe into Cloud Licensing Practices
By Paul Sandle
LONDON, March 31 (Reuters) - Britain's competition regulator said on Tuesday it would again investigate Microsoft’s software‑licensing practices in the cloud market as part of a broader probe, months after declining to act on earlier findings.
Background: Previous Findings and Market Dominance
Last year a Competition and Markets Authority inquiry group found the dominance of Amazon and Microsoft was harming competition in cloud computing, with the latter singled out for its licensing practices.
Microsoft’s Licensing Practices
It said Microsoft was using its power in enterprise software, such as Windows Server and Microsoft 365, to limit competition by charging licensing fees when its services were used on rival platforms.
Global Antitrust Scrutiny
PRAGMATIC ACTION
Antitrust authorities in the European Union and the United States are also investigating the cloud computing market.
Industry Response and Market Shares
The CMA said on Tuesday that Amazon and Microsoft were taking "material steps" to lower some of their fees in the cloud market following its previous investigation.
Market Share Breakdown
The two companies have around 30-40% shares in cloud services such as processing, storage and networking. Google is the third main provider, with a smaller share of 5-10%.
Details of the New CMA Investigation
The CMA said its new investigation into Microsoft's business software ecosystem would allow it to assign the company with "strategic market status" in business software, which would allow it to make targeted interventions in software licensing.
Regulator’s Approach
CMA chief executive Sarah Cardell said the regulator was acting in a "flexible, pragmatic way to deliver real impact, as quickly as possible for UK customers".
Focus on Cloud Services
"Cloud remains central to our approach – we've seen real progress through our engagement with Microsoft and Amazon to drive meaningful improvements on egress fees and interoperability and we expect more action from them over the coming months," she said.
Company Statements
Microsoft’s Response
Microsoft said the changes it had agreed with the CMA were focused on charges for moving data, switching, and interoperability.
"The changes address the CMA's commitment to ensuring that UK customers can continue to move, deploy, and operate their workloads in the clouds of their choice with confidence, flexibility, and ever reduced friction," vice chairman and president Brad Smith said in a statement.
Amazon’s Response
Amazon said the steps it had taken - around multicloud adoption, data portability and switching - formalised its commitment to customer choice.
(Reporting by Paul Sandle; Editing by Muvija M, Editing by Louise Heavens)
