Google Cloud has joined the growing list of critics of Microsoft’s approach to charging enterprise customers more for using its software on competing cloud platforms by formally filing a complaint with the European Commission.
The cloud division of the tech giant argues that this practice negatively impacts customers and violates European Union laws. Google has accused Microsoft of “leveraging its software monopoly” to lock customers into its own cloud service, Azure.
At a press conference announcing the complaint, Amit Zavery, Google Cloud’s vice president and general manager of its platform, outlined how Microsoft allegedly exploits its dominant position in the enterprise IT sector to create financial disincentives for customers using rival cloud services. “Numerous businesses rely on Microsoft products in their IT infrastructure, whether on their private data centers, on-premises, or in the cloud. The Windows Server operating system, which commands about 70% market share, is particularly significant,” he noted.
Zavery continued, “Microsoft restricts the transfer of these licenses to other cloud providers, directing them towards Azure and linking on-premise products and Windows Server to Azure, which are distinct markets. One pertains to on-premise operating systems, while the other focuses on cloud services.”
He believes that regulatory intervention is essential to eliminate Microsoft’s vendor lock-in and foster a competitive environment for customers. “Currently, customers face challenges in selecting the ‘best product and technology’ for their Windows Server licenses. Whether it’s Azure, AWS, other European providers, or Google Cloud, customers should have the freedom to choose what best suits their needs.”
Zavery described Windows Server as the “backbone of IT environments” for both private enterprises and public organizations, emphasizing its compatibility with “any hardware or cloud” platform. However, he argued that since Microsoft entered the cloud arena, it has linked Windows Server to Azure, forcing customers to view Azure as the default deployment option, which limits choices and drives up costs.
“This bundling issue restricts customer options, resulting in higher expenses and reduced choices,” Zavery asserted. He also pointed out that customers wishing to run Windows Server on non-Azure public clouds face a staggering 400% price increase, while those migrating their licenses to Azure incur no extra charges. “Microsoft advertises this markup on its website, warning customers that choosing competitors will lead to additional costs and limited access to security updates.”
Google is not the first organization to challenge Microsoft’s cloud licensing strategies, nor the first to bring the matter to the European Commission’s attention. In November 2022, the Cloud Infrastructure Service Providers in Europe association filed a similar complaint, which was later withdrawn in July 2024 after reaching a $22 million settlement.
In response to Google Cloud’s recent complaint, a Microsoft spokesperson stated, “Microsoft amicably resolved similar concerns raised by European cloud providers, despite Google’s hopes for continued litigation. Having failed to sway European businesses, we anticipate that Google will not succeed in persuading the European Commission either.”