The South African Competition Commission is gearing up to file a formal complaint against Microsoft, specifically targeting its Azure cloud business. Sources familiar with the matter revealed that the commission alleges Microsoft imposing excessive charges for businesses looking to switch their cloud licenses to alternative vendors.
Microsoft to Face South African Competition Watchdog Complaint Over Azure Cloud Business
Expected to be lodged in the coming days, this complaint may initiate a legal dispute that could potentially lead to significant penalties, amounting to up to 10% of Microsoft’s revenue in South Africa.
Microsoft’s Azure cloud business has drawn regulatory scrutiny in South Africa and globally, with the European Union conducting an informal investigation into potential anticompetitive practices.
Moreover, the UK’s competition regulator has initiated a probe into the cloud market, focusing on how Microsoft’s Azure terms might impede competition.
As of now, Microsoft has not responded to requests for comment on the matter, while the Competition Commission has declined to provide immediate feedback.
Broader Trend of Regulatory Crackdowns
The South African watchdog’s action against Microsoft aligns with a broader trend of regulatory crackdowns on Big Tech worldwide, targeting alleged abuses of market dominance.
In a similar vein, Google faced regulatory intervention last year in South Africa, resulting in directives to enhance visibility for smaller local companies in search results and contribute to the training of smaller platforms.
Additionally, South African officials are currently investigating whether artificial intelligence models and digital platforms managed by companies like Microsoft are constraining the revenue-generating capabilities of the nation’s news and media enterprises.
Global Scrutiny Faced by Tech Giants
The impending complaint against Microsoft underscores the intensified global scrutiny faced by tech giants and highlights the growing concerns surrounding market power abuse in the digital landscape.
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