Microsoft is ramping up efforts to avert a formal antitrust probe in Europe, submitting a revised proposal to address concerns raised by European cloud providers amid a long-running dispute over alleged anti-competitive practices.
The company is seeking to settle complaints filed by CISPE (Cloud Infrastructure Services Providers in Europe), which had accused Microsoft of imposing unfair terms and inflated licensing fees for running its software on rival cloud platforms. Microsoft has presented new commercial terms to CISPE, marking the latest chapter in a saga that has drawn increasing scrutiny from European regulators and watchdogs, techradar reported.
CISPE confirmed it received Microsoft’s latest proposal “within the deadline demanded by the memorandum of understanding signed in July 2024.” The proposal is currently under review, with CISPE expected to issue a response in the coming weeks.
According to reports by The Register, the offer is believed to include reductions in Service Provider License Agreement (SPLA) fees—potentially reversing a prior 10% increase—and could remove obligations for service providers to share customer lists with Microsoft.
The submission follows Microsoft’s failure to meet a key deadline in 2023 to launch Azure Local, a European-specific version of its cloud infrastructure, which was part of a previous settlement agreement. That missed deadline led to renewed negotiations and heightened skepticism about the company’s commitment to competition in the region.
Microsoft’s conduct has also been the subject of public evaluation by the European Cloud Competitive Observatory (ECCO). In its most recent report published in May 2025, ECCO issued Microsoft an “Amber” rating—the second consecutive such rating for the tech giant—indicating ongoing concerns about market behavior. However, the report also noted that Microsoft had maintained a “cooperative working relationship” with authorities.
CISPE Secretary General Francisco Mingorance commented on the ongoing negotiations, saying: “It is disappointing that the proposed product did not deliver, but this is not the end of the Agreement.”
Microsoft has not publicly commented on the latest developments, despite multiple media inquiries. The company remains under mounting pressure to resolve the issue as EU regulators weigh whether further intervention will be necessary.
As cloud services continue to expand in importance across Europe, Microsoft’s efforts to placate competition concerns may prove critical not only to its regional operations but also to broader questions of digital sovereignty and fair access in Europe’s evolving cloud ecosystem.
