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South African Antitrust Agency to Investigate Microsoft Over Cloud Computing Licensing

 |  April 4, 2024

South Africa’s antitrust agency is poised to launch an investigation into Microsoft’s cloud computing licensing practices. A source with direct knowledge of the matter disclosed this information to Reuters on Thursday.

The impending probe suggests that South Africa is closely following the footsteps of the EU, which has already taken action against the U.S. software giant over similar concerns. The source indicated that the South African case is expected to parallel the antitrust proceedings initiated by the European Union.

Reuters reported that South Africa’s competition agency has not yet responded to their request for comment on the matter, indicating the preliminary stage of the investigation.

Related: Microsoft Cloud Computing Will Change To Align With EU Wishes Next Month

Microsoft has been under scrutiny in the EU following a complaint filed by the industry group CISPE (Cloud Infrastructure Services Providers in Europe). The complaint, lodged late in 2022, alleged that Microsoft’s cloud computing licensing practices were detrimental to Europe’s cloud computing ecosystem. CISPE represents a consortium of 26 smaller EU cloud providers, along with major player Amazon.com.

Responding to queries, Microsoft stated that it is not aware of any complaint filed by the South African competition authority. The company emphasized this stance in an emailed statement, suggesting a lack of formal notification from South African regulators regarding the impending investigation.

Source: Reuters