South African Competition Watchdog Targets Microsoft's Azure Cloud Business

South African competition regulators are gearing up to lodge a formal complaint against Microsoft’s Azure cloud business, alleging market abuse and anti-competitive behaviour. The move comes amidst global concerns regarding the tech giant’s dominance and its alleged efforts to stifle competition.

According to sources familiar with the matter, the Competition Commission is preparing to accuse Microsoft of imposing excessive charges for businesses looking to switch their cloud licenses to other providers. The complaint, expected to be filed in the coming days, could initiate a legal confrontation that might result in fines of up to 10% of Microsoft’s revenue in South Africa.

Microsoft’s Azure cloud division has also attracted scrutiny from regulators worldwide, including the European Union, where it is currently under informal investigation. Additionally, the UK’s competition regulator has launched a probe into the cloud market, specifically examining whether Microsoft’s Azure terms are impeding competition.

Despite the impending complaint, Microsoft has not yet issued a response to requests for comment, while the Competition Commission has refrained from immediate commentary on the matter.

This move aligns with a broader global trend of regulatory scrutiny targeting major technology firms for alleged market abuses. In South Africa, regulators have intensified their efforts to rein in Big Tech, exemplified by last year’s directive to Google to enhance visibility for smaller local businesses in search results and invest in the training of smaller platforms.

Furthermore, authorities are currently investigating whether AI models and digital platforms, including Microsoft’s Bing, are constraining the revenue-generating capabilities of South African news and media companies.