European cloud providers still not satisfied with Microsoft’s licensing reform efforts

Microsoft has still not developed a product to satisfy its settlement terms with the European cloud providers’ association CISPE.

In the second report released by CISPE’s European Cloud Competition Observatory (ECCO) reviewing Microsoft’s progress, the company has again been rated with “amber,” meaning “some concerns exist, but corrective actions have been proposed.”

In July 2024, Microsoft settled an antitrust complaint from CISPE, which argued that the company’s contracts were harming the European cloud computing market.

Microsoft paid €20 million ($21.7m) to settle the deal, as well as agreeing to develop a product – Azure Stack HCI for European cloud providers (now known as Azure Local) – that would enable CISPE’s members to run Microsoft software on their platforms at equivalent prices to Microsoft’s.

The company also agreed to compensate CISPE members for lost revenues related to their licensing costs for the last two years.

The ECCO was set up to monitor the progress of those commitments.

Microsoft was similarly rated ‘amber’ in the first report from ECCO, published in February 2025, with ECCO noting that Azure Local was not yet satisfying the requirements.

The latest report states that “both Microsoft and CISPE have now agreed that Azure Local will not deliver the full set of features outlined in the agreement” and have thus concluded this “first phase” and will start looking for an alternative solution.

Microsoft has until 10 July to submit a formal proposal.

Open Cloud Coalition, a group campaigning for greater competition across the cloud market, responded to the report. A statement from OCC’s senior advisor Nicky Stewart said: “Microsoft has a track record of delaying, deflecting, and offering superficial commitments to avoid real change. Meanwhile, it further consolidates its dominant position. This case is no different. The ECCO process is no substitute for formal antitrust enforcement. It lacks the authority to hold anyone to account. This is why the cloud market is in urgent need of robust antitrust action.”