Brussels. Microsoft has reached a €20 million ($21.7 million) settlement to resolve an antitrust criticism over its cloud computing licensing practices, avoiding an EU antitrust investigation and a possible hefty high quality.
The cloud companies organisation CISPE, whose members embody Amazon and round 20 small EU suppliers, filed a criticism with the European Fee in late 2022 alleging that contractual situations imposed by Microsoft on 1 October have been damaging to the European ecosystem.
Microsoft is behind market chief Amazon within the multi-billion greenback cloud computing sector, however forward of Alphabet’s Google. The sector has attracted antitrust scrutiny on each side of the Atlantic.
“After working with CISPE and its European members for over a yr, I’m happy that we now have not solely addressed their previous issues, however have additionally labored collectively to outline a path ahead that brings much more competitors to the cloud computing market in Europe and past,” mentioned Brad Smith, president of Microsoft.
CISPE mentioned Microsoft will develop a product that may permit members of the group to run the corporate’s software program on their platforms throughout the US know-how big’s Azure cloud infrastructure, with costs equal to these of Microsoft. The agency has 9 months to ship it.
Microsoft will even compensate CISPE members for misplaced income associated to their licensing prices over the previous two years, the group mentioned, with out disclosing monetary figures. The corporate has provided about 20 million euros in whole, two folks with direct data of the matter advised Reuters.
The settlement doesn’t embody Amazon Net Providers (AWS), Google Cloud Platform and AliCloud, prompting criticism from the primary two firms.
OpenAI Board of Administrators Steps Down
Individually, Microsoft has resigned from its observer place on OpenAI’s board of administrators, in a transfer aimed toward easing issues from US and UK antitrust regulators concerning the extent of its management over the synthetic intelligence firm.
Microsoft assumed a non-voting observer function in November after OpenAI CEO Sam Altman took over the reins of the corporate.
The place meant Microsoft may attend OpenAI board conferences and entry delicate data, however had no voting rights on issues such because the election of administrators.
Microsoft’s observer standing and $10 billion-plus funding in OpenAI have sparked anger amongst antitrust our bodies within the EU, UK and US over the diploma of management it exerts over OpenAI.
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– 2024-07-18 13:21:10