In a developing legal saga, South Africa gears up to probe Microsoft’s cloud computing licensing practices, a source intimately familiar with the situation disclosed to Reuters. Drawing parallels with the European Union’s antitrust case, the investigation intends to scrutinize Microsoft’s conduct in the realm of cloud computing licensing.
While Microsoft asserts its lack of awareness regarding any complaint from South Africa’s competition authority, the probe looms large, awaiting official confirmation or denial from the South African competition agency.
This move echoes a broader trend, as Microsoft finds itself embroiled in a similar EU complaint over its cloud computing licensing practices. The complaint, spearheaded by industry group CISPE and backed by a consortium including Amazon.com and 26 smaller EU cloud providers, alleges detrimental impacts on Europe’s cloud computing ecosystem due to Microsoft’s contractual terms.
The backdrop to this legal drama includes Microsoft’s mid-2022 adjustment of its licensing terms, prompted by grievances raised by rivals from Germany, Italy, Denmark, and France, all of whom voiced their concerns to the EU competition watchdog.
As South Africa steps into the fray, the global tech giant braces itself for yet another legal battle, navigating the intricate landscape of international antitrust scrutiny.
