Working the issue out bilaterally could help Microsoft stave
off a possible lengthy EU investigation that could lead to a possible fine and
an order to change its business practices.
CISPE, whose members include Amazon and 26 small EU cloud
providers, filed a complaint with the European Commission in late 2022 alleging
that Microsoft's new contractual terms imposed on Oct. 1 were harming Europe's
cloud computing ecosystem.
Microsoft, which ranks behind market leader Amazon in the
cloud computing sector but ahead of Alphabet's Google, amended its licensing
terms in mid-2022 after rivals in Germany, Italy, Denmark and France took their
grievances to the EU competition watchdog.
However, Amazon, Google, Alibaba and Microsoft's own cloud
services are excluded from the changes.
"Today, CISPE confirms that it has opened discussions
with Microsoft aimed at resolving ongoing issues related to unfair software
licensing for cloud infrastructure providers and their customers in
Europe," the trade body said in a statement.
"Both parties are exploring potential remedies."
"We continue to work constructively with CISPE to
resolve concerns raised by European cloud providers," a Microsoft
spokesperson said, declining to provide details.
The Commission said it had received several complaints about
Microsoft, including in relation to its product Azure, which it was assessing
based on its standard procedures, but declined to comment further. Azure is
Microsoft's cloud computing platform.
CISPE said the discussions were at an early stage and it was
uncertain whether these would result in effective remedies but said
"substantive progress must be achieved in the first quarter of 2024".
"We are supportive of a fast and effective resolution
to these harms but reiterate that it is Microsoft which must end its unfair
software licensing practices to deliver this outcome," said CISPE
secretary general Francisco Mingorance.
Microsoft, which notched up 1.6 billion euros ($1.7 billion)
in EU antitrust fines in the previous decade, has in recent years changed its
approach towards regulators to a more accommodative one.
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