South African Regulator Probes Microsoft for Cloud Licensing Practices

South Africa’s competition watchdog is gearing up to investigate Microsoft for its cloud computing licensing methods, according to an insider familiar with the situation who spoke to Reuters on Thursday.

This forthcoming inquiry shows that South Africa is taking cues from the European Union, which have previously targeted the American tech behemoth for similar infractions. The insider hinted that the South African investigation is likely to mirror the antitrust actions taken by the EU.

As of now, South Africa’s competition authority has not publicly commented on the investigation, signaling that the probe is in its nascent stages, as per Reuters’ report.

In related news, Microsoft will adjust its cloud computing operations next month to accommodate EU regulations.

In the EU, Microsoft has faced legal challenges after the Cloud Infrastructure Services Providers in Europe (CISPE) filed a complaint. Late in 2022, CISPE accused Microsoft of engaging in cloud computing licensing practices that harm the cloud computing market in Europe. CISPE is an alliance of 26 smaller European cloud service providers, including tech giant Amazon.com.

Microsoft, when asked about the developments in South Africa, responded that it has not been formally apprised of any complaint by the South African competition authority. The company communicated its unawareness of the South African probe through an email, indicating that it has yet to receive official notification from the local regulatory body.

Inside Telecom provides you with an extensive list of content covering all aspects of the tech industry. Keep an eye on our Tech sections to stay informed and up-to-date with our daily articles.