Microsoft reaches a settlement with French cloud service OVHcloud in which OVHcloud will drop its March 2022 antitrust complaint to EU regulators
Context & Ripple Effects
OVHcloud’s complaint began as a 2022 challenge to Microsoft’s cloud-licensing practices before EU regulators. Microsoft had already relaxed some European cloud licensing rules following rivals’ concerns, and reports in 2023 indicated it was pursuing a negotiated resolution with OVHcloud and other providers.
The OVHcloud agreement follows Microsoft’s recent settlement with cloud trade group CISPE, which included a tool for members to run Microsoft software on their own platforms. Together, the deals show Microsoft addressing disputes with European cloud providers through bilateral arrangements rather than letting each complaint run its full regulatory course.
First-order effects
- OVHcloud will withdraw its March 2022 EU antitrust complaint, removing an immediate regulatory dispute between it and Microsoft.
- Microsoft closes another challenge to its cloud licensing approach; the reported settlement terms are not disclosed.
Second-order effects
- Other European cloud providers gain a recent negotiating reference point, particularly after the CISPE settlement created a platform tool for members, though OVHcloud’s terms may not be available or transferable.
- With OVHcloud’s complaint withdrawn, pressure shifts away from this individual case and toward whether remaining complainants or trade groups seek comparable accommodations.
Third-order effects
- If large cloud vendors repeatedly resolve licensing disputes through provider-specific settlements, competition concerns may be handled through negotiated interoperability and commercial access commitments rather than precedent-setting EU decisions.
- That path could leave cloud-market rules less standardized across providers unless regulators or collective complaints establish broader remedies; the undisclosed OVHcloud terms make that outcome uncertain.
The trend: European cloud providers are increasingly using collective and bilateral bargaining to challenge hyperscalers’ software-licensing leverage across competing cloud platforms.