Microsoft has failed to meet its mid-April 2025 deadline to launch a dedicated, EU-compliant version of its Azure cloud platform, a key commitment tied to ongoing antitrust concerns in Europe.
The initiative was part of a broader agreement with the Cloud Infrastructure Services Providers in Europe (CISPE), which represents independent European cloud providers. Microsoft had pledged to deliver a “Hoster Product” tailored to EU needs, offering features like multi-tenancy support, unrestricted virtualization, and pay-as-you-go SQL Server licensing. The effort was aimed at addressing long-standing complaints about Microsoft’s cloud licensing practices, which critics say favor its own Azure service over competitors.
The issue stems from a November 2022 antitrust complaint filed by CISPE, accusing Microsoft of anti-competitive behavior that made it more expensive to run Microsoft software on rival cloud platforms. In response, Microsoft promised to reform its licensing terms and introduce new solutions to foster fairer competition across the European market.
Despite these promises, the European Cloud Compliance Observatory (ECCO) has maintained its “amber” rating in its second report on Microsoft’s progress. The rating signals that while there has been some movement, significant concerns remain. “Some concerns exist but corrective actions have been proposed,” ECCO noted.
CISPE acknowledged the delay but emphasized continued dialogue. “It is disappointing that the proposed product did not deliver,” said CISPE Secretary General Francisco Mingorance. “But this is not the end of the Agreement. Phase 2 opens the door to discuss alternative, commercially equivalent solutions that enable CISPE members and Europe’s cloud infrastructure providers to compete fairly, while still offering Microsoft’s productivity tools to their customers.”
As part of this next phase, Microsoft is now required to present a “Plan B” — viable alternative solutions — by July 10, 2025. Failure to do so could trigger new legal action.
Meanwhile, scrutiny of Microsoft’s cloud practices continues beyond the EU. The UK’s Competition and Markets Authority (CMA) is also reviewing Microsoft’s licensing terms, signaling that the company’s cloud dominance remains under the microscope on multiple fronts.
