Microsoft Corp. (NASDAQ:MSFT) Changes Terms of Its Software Licensing Agreements Following Complaints

Microsoft Corp. (NASDAQ:MSFT) spilling in bull’s river and shares move up around 1% in pre trading session as the firm described intended changes to the terms of its software licensing agreements, after complaints to antitrust regulators from some European cloud-computing service providers that the firm’s practices put competitors at a competitive disadvantage.

Microsoft stated in a blog post on Monday that the changes will make it simpler for customers of competitor cloud-service firms in Europe to move their existing software to these other networks. The company said, the new terms will also ensure that cloud partners contain access to the products necessary to sell cost-effective solutions that customers want.

Oct. 1 marks the start of the new policy. Although Microsoft said that the new regulations apply to cloud vendors worldwide, the blog article only mentions European cloud providers and their clients from across the world. The two main cloud rivals of Microsoft, Inc. and Google, as well as Alibaba Group Holding Ltd. of China, are specifically exempt from the limitations.

The European Commission has launched a formal investigation into Microsoft’s commercial practices. After receiving a complaint from France’s OVHcloud last year that Microsoft’s licensing terms disadvantage it by making it more difficult to run Microsoft products on their cloud networks while making it easier or less expensive to pair Windows, Office, and Windows Server with the company’s own Azure cloud, the commission sought input from competing services. Microsoft Vice President and President Brad Smith recognized that the business still needed to make changes to its procedures in May.

Smith said at the time, “We don’t think all of these claims are valid, but some of them are. “So we’re making changes.”

As the amended licensing deals and other changes making it easier for cloud service providers to contend will take effect on Oct. 1, Microsoft Corp declared on Monday, a move triggered by complaints about the U.S. software firm to EU antitrust regulators.

Brad Smith, president of Microsoft had releases the changes in May but did not say when they would be effective.

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