Google has filed an antitrust complaint with European regulators against Microsoft, accusing the tech giant of unfair licensing practices in its Azure cloud services.

The complaint highlights that Microsoft has imposed restrictive licensing terms since 2019, which significantly increase costs for businesses wishing to use Windows Server on competing cloud platforms.

Google claims that Microsoft's dominant Windows Server operating system effectively locks customers into its cloud services, thereby stifling competition and innovation.

Research indicates that European businesses are paying up to €1 billion annually to use Microsoft software outside of Azure, further illustrating the financial impact of Microsoft's licensing practices.

Migrating workloads to competing cloud platforms results in a staggering 400% price markup for European customers, despite the absence of technical barriers to such transitions.

Amit Zavery, Google Cloud's Vice President, emphasized that this legal action aims to end Microsoft's 'lock-in' practices and foster fair market conditions.

Zavery also noted that customers face a significant markup when running Windows Server on rival cloud platforms, which does not apply to those using Azure.

This situation has prompted discussions among major cloud providers, including Google, Microsoft, and AWS, regarding the health of the cloud services market.

Currently, Microsoft Azure holds a 25% share of the global cloud market, while Google Cloud has 11%, and Amazon Web Services leads with 31%.

Google asserts that Microsoft's licensing practices have cost European companies and governments over €1 billion annually, hindering competition and digital transformation.

In response, Microsoft has defended its practices, stating that it has previously resolved similar concerns with other European cloud providers.

The ongoing dialogue about maintaining a fair cloud market is crucial, as restrictive licensing practices are seen as detrimental to European competitiveness.