Google has lodged an antitrust complaint with the European Union (EU), accusing Microsoft of engaging in anti-competitive practices to entice customers to its cloud platform, Azure. Google contends that Microsoft is violating European competition laws by imposing excessive fees on customers seeking to transfer projects running on Microsoft’s Azure cloud infrastructure.

In a blog post, Google highlighted that Microsoft is charging a 400% mark-up for customers who wish to continue running Windows Server on competing cloud platforms. Amit Zavery, Vice President of Google Cloud Platform, remarked, “We believe this regulatory action is the only way to end Microsoft’s vendor lock-in, allowing customers to choose freely and create a level playing field for competitors.” The complaint cites research indicating that European businesses and public sector organizations spend up to €1 billion annually to run Microsoft software on non-Azure cloud environments.

Microsoft has defended its cloud practices, with President Brad Smith asserting that a previous agreement had already addressed concerns and fostered competition. In July, Microsoft reached a €20 million settlement over a similar antitrust complaint regarding its cloud licensing practices with CISPE, a cloud infrastructure association, which helped the company avoid further scrutiny by the European Commission. However, Microsoft’s cloud practices are also currently under investigation by the UK’s Competition and Markets Authority (CMA).