Microsoft and CISPE have reached an agreement related to the competition complaint filed by CISPE against Microsoft before the European Commission in November 2022. Under a Memorandum of Understanding signed by both parties, Microsoft has committed to making certain changes to address the claims made by European members of CISPE and, as a result, CISPE will withdraw its complaint against Microsoft. Amazon Web Services, a member of CISPE, was excluded from these negotiations and, along with Google Cloud Platform and AliCloud, will not benefit from or be bound by these terms.
The core of the agreement is a collaboration between the parties to launch an enhanced version of Azure Stack HCI for European cloud providers (Azure HCI Stack for Hosters), offering features that Microsoft customers using Azure Stack HCI currently enjoy. These features include:
• Multi-session virtual desktop infrastructure based on Windows 11
• Free Extended Security Updates (ESU)
• Pay-as-you-go licenses for SQL Server
This collaboration will enable European cloud providers to offer Microsoft applications and services on their local cloud infrastructures, meeting the demand for sovereign cloud solutions and addressing the disruption experienced by European cloud providers and their customers following the acquisition of VMware by Broadcom.
An independent European Cloud Observatory (ECO) will be established by CISPE to monitor the ongoing development and assessment of the product. The ECO, which will include Microsoft, cloud infrastructure vendors operating in Europe, and representatives from European customer associations, will conduct regular public assessments, reports, and recommendations related to the implementation of the agreement and ensure fair software licensing in the cloud.
In recognition of Microsoft’s commitments, CISPE will formally withdraw its competition complaint before the European Commission and will not initiate or support complaints on these matters in Europe or elsewhere. The agreement does not prevent CISPE or its members from complying with information requests from regulators, and CISPE will continue to advocate for fair software licensing in the cloud.
Microsoft now has nine months to fulfill its commitment to deliver the Azure Stack HCI for Hosters product, or address software licensing issues in other ways. If, at the end of that period, CISPE determines that Microsoft has not met its obligations related to the promised changes, it will resubmit its complaint.
As part of the agreement, Microsoft will pay a global contribution to CISPE to reimburse litigation costs and campaigns for fair software licensing over the past three years.
Francisco Mingorance, Secretary General of CISPE, said:
“This is a significant victory for European cloud providers. CISPE has given Microsoft the benefit of the doubt and believes that this agreement will provide a level playing field for European cloud infrastructure service providers and their customers. Microsoft has nine months to fulfill its commitment by offering solutions that enable fair licensing terms for its productivity software on European cloud infrastructures.
“To ensure the continued primacy of European members, the CISPE General Assembly has also instructed the Board to review the association’s governance to ensure that European businesses and SMEs remain in control of CISPE campaigns in case Microsoft or other global hyperscalers seek to become members. The proposed modifications will be presented before the next General Assembly on October 18, 2024.”