MSFT: Microsoft Nearing Settlement Agreement Amid Cloud Computing Antitrust Concerns

Microsoft has been juggling a series of antitrust concerns for some time now. The main issue of course being its $69bn deal to acquire Activision Blizzard which was proposed in January 2021. Recently, the prospects of that deal are beginning to look more positive, with a number of national regulators including those of Japan and the UK weakening their stances. However the tech giant has also been dealing with European complaints surrounding anti-competitive practices in its cloud computing unit. And this week, there’s been positive signs that it could be coming to an end too.

What were the complaints?

Last year, three separate cloud computing companies based in Europe filed complaints against Microsoft, alleging that the company’s business practices make it difficult for customers to use the services of a competitor. Even Google has weighed in on the issue, suggesting that European regulators are not scrutinizing Microsoft’s practices closely enough. Google also criticized them for allegedly buying out the companies who file complaints against them.

What’s happening now?

This week however, Microsoft is very close to finalizing a settlement deal with some of the companies who brought the complaints to the regulator. An official announcement has not yet been made, but one is expected to be released in the near future confirming the details. The deal will reportedly involve some companies including OVHcloud dropping their complaints, but some companies (including Amazon-backed CISPE) will be continuing with its own complaint. As for Microsoft’s share price, they’ve had a fairly positive month with a 14% gain since it began.