Microsoft (MSFT) Azure Likely to Face Scrutiny in South Africa

From Nasdaq: 2024-04-05 08:30:00

Microsoft faces scrutiny from the Competition Commission of South Africa for alleged anti-competitive practices, risking potential fines of up to 10% of its revenues in the nation. This follows global regulatory concerns about the tech giant’s market dominance. South African regulators have also targeted Google for search result visibility and AI model interference with news revenue.

The EU is investigating Microsoft’s bundling of Teams and Office, responding to complaints by Slack about anti-competitive behavior. Microsoft unbundled the products in Europe to avoid potential antitrust fines. The tech giant may still face charges related to fees and rival messaging service compatibility. MSFT also faces scrutiny over cloud computing licensing in Europe.

With a history of EU antitrust fines, Microsoft’s data collection practices are under scrutiny, along with its compliance with privacy regulations. The UK’s Competition and Markets Authority is investigating potential competition-limiting terms in Microsoft’s Azure contracts. Shares of the tech giant have outperformed the Computer and Technology sector this year amid regulatory challenges.

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