Microsoft is facing an antitrust probe by the European Union due to inadequate remedies for concerns about its cloud computing practices, according to sources.
The EU is set to launch a formal investigation into Microsoft after the company’s proposed solutions failed to satisfy regulators regarding its cloud computing practices.
This probe is part of a series of antitrust investigations into Microsoft by the EU, with a previous fine of $1.3 billion in 2009 for abusing its dominant market position in operating systems.
The current investigation focuses on Microsoft’s Azure cloud computing platform and the EU’s concern that it gives unfair advantages to its own products and services.
In 2023, Microsoft offered remedies to address the EU’s concerns, including easier customer switching and access to data centers for rivals. However, the European Commission was not content with these measures.
As a result, the Commission is preparing to initiate a formal antitrust investigation, which could lead to fines of up to 10% of Microsoft’s global revenue and require changes to its business practices.
A Microsoft spokesperson stated the company’s commitment to collaborating with the European Commission and their belief in the effectiveness of their proposed remedies.
This EU antitrust probe reflects the increased regulatory scrutiny faced by Microsoft worldwide, including an investigation by the US Justice Department for potential antitrust violations.
The outcome of the EU’s investigation could heavily impact Microsoft’s business, potentially resulting in substantial fines and changes to their operations, making it more challenging to compete in the cloud computing market.
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