Google Cloud has filed a formal complaint with the European Commission concerning Microsoft's anti-competitive licensing practices. The complaint centers around Microsoft's strategy of locking customers into its Azure cloud platform through restrictive licensing terms, particularly regarding its Windows Server operating system.

Google Cloud argues that Microsoft's practices are harming competition and innovation in the European cloud computing market, leading to higher prices and reduced choices for customers. They also raise concerns about the impact on European vendors and government agencies.

The complaint highlights changes Microsoft made to its licensing terms in 2019, which imposed significant financial penalties on businesses wanting to use Windows Server software on competing cloud platforms like Google Cloud and AWS. Google alleges that these changes have forced customers to pay up to five times more to use Windows Server on competing platforms, effectively locking them into Azure.

Furthermore, Google Cloud points out that Microsoft's practices result in reduced security and reliability, as locking customers into a single vendor creates a single point of failure. It also hinders the ability of European businesses to fully utilize cloud computing, including using multiple clouds.

Google Cloud advocates for fair and transparent licensing practices in the cloud computing market, allowing businesses to choose the best solutions for their needs without restrictions. This complaint is expected to lead to a broader investigation by the European Commission into Microsoft's practices and their impact on market competition.