Brazil Opens Investigation into Microsoft’s Software and Cloud Practices

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Brazil’s competition authority, the Administrative Council for Economic Defense (Cade), has opened an investigation into Microsoft over suspected anti-competitive practices related to its software and cloud computing services, according to a report by Valor Econômico.

The investigation will focus on whether Microsoft’s software licensing practices restrict competition in the cloud computing market, in particular when Microsoft software is deployed on cloud infrastructure provided by rival service providers. According to official documents cited in the report, Cade will assess whether these practices create barriers for competing cloud providers or distort competitive conditions in the market.

The probe adds to growing global scrutiny of Microsoft’s conduct in digital and cloud-related markets, where regulators have increasingly focused on licensing, interoperability, and bundling practices as potential sources of competitive harm.

In parallel, Microsoft has recently faced regulatory action in the European Union. In September, the European Commission accepted a set of commitments offered by the company to address concerns that it had abused a dominant position by bundling its video conferencing application, Teams, with its Office productivity suite. By accepting these commitments, Microsoft avoided a potential antitrust fine from the Commission.

Under the commitments, Microsoft agreed to separate Teams from the Office installation package and to offer customers greater choice. Most of the agreed changes must remain in force for a period of seven years. Commitments relating to interoperability and data portability will apply for a longer duration of ten years.