Microsoft’s uneasy relationship with European cloud providers has hit another snag. Nearly a year after settling antitrust claims with CISPE, the company still hasn’t delivered a working solution that meets the terms of that agreement—and patience in the industry is wearing thin.
In a second review released this week, the European Cloud Competition Observatory (ECCO) rated Microsoft’s compliance status as “amber” again, meaning significant concerns remain despite efforts to address them. The latest blow centers on Azure Local, a product Microsoft promised to develop for EU cloud providers to level the playing field. But now, both Microsoft and CISPE admit the product won’t meet all the requirements they agreed on last July.
Microsoft’s July 2024 settlement came after CISPE accused it of using licensing rules to undercut independent providers. Along with a €20 million payment, Microsoft pledged to create a fair-use version of its platform and compensate providers for lost revenue. So far, critics say, it hasn’t made good on either.
By July 10, Microsoft must submit a new proposal. But some observers already view the process as a dead end. “This is Microsoft’s playbook—delay, deflect, then offer a watered-down fix,” said Nicky Stewart, advisor to the Open Cloud Coalition. “Meanwhile, it tightens its grip on the European cloud market.”
Stewart and others argue the ECCO process lacks teeth and call for stronger regulatory intervention. The original complaint warned that Microsoft’s tactics weren’t just anti-competitive—they were reshaping the market by steering customers toward Azure, often at higher long-term costs.
The broader issue reflects a growing tension in Europe’s cloud landscape. As more governments and businesses push for digital sovereignty, they also expect accountability from dominant tech players. Microsoft’s failure to deliver on its commitments could trigger renewed calls for full antitrust enforcement.
For now, European providers wait—again—for a product that may never arrive in full. Whether regulators will keep waiting is another question entirely.
