South African competition watchdogs are preparing to lodge a formal complaint against Microsoft's Azure cloud business, citing concerns about the tech giant's alleged abuse of market dominance to stifle competition. Sources familiar with the matter, speaking on the condition of anonymity, revealed that the Competition Commission plans to accuse Microsoft of imposing exorbitant charges on businesses seeking to switch their cloud licenses to alternative vendors.
The anticipated move, expected to materialize in the coming days, may escalate into a legal showdown, potentially culminating in hefty fines amounting to as much as 10% of Microsoft's revenue in South Africa.
This development comes amid a global crackdown on Microsoft's Azure cloud business by regulatory authorities. In the European Union, for instance, the company is currently under informal investigation. Meanwhile, the UK's competition regulator has initiated its own probe into the cloud market, focusing in part on whether Microsoft's Azure terms are inhibiting fair competition.
Despite requests for comment, Microsoft has yet to respond. Likewise, the Competition Commission has refrained from immediate commentary.
The scrutiny of Big Tech extends beyond South Africa, with regulatory bodies worldwide scrutinizing alleged market abuses. In a recent directive, Google was instructed to enhance visibility for smaller South African companies in search results and contribute to the training of smaller platforms.
Moreover, ongoing investigations are delving into whether artificial intelligence models and digital platforms managed by companies like Microsoft's Bing are impeding the revenue-generating capabilities of South Africa's news and media entities.
Source: TechCentral SA