Brazilian antitrust authority, the Administrative Council for Economic Defense (Cade), has opened an administrative investigation into Microsoft for potential violations of economic order in Brazil. The probe focuses on the company’s practices in the corporate software and cloud computing markets, following a formal decision published last Friday (January 2nd).
The investigation was initiated based on an internal technical analysis conducted by Cade’s General Superintendence, which determined that a deeper review of Microsoft’s business conduct was necessary. Notably, the decision draws heavily on a report issued by the UK’s Competition and Markets Authority (CMA) in July of the previous year.
In its report, the CMA found that Microsoft’s software licensing policies had adverse effects on competition in the British market. The regulator concluded that these practices significantly weakened the competitive position of rival companies, particularly Amazon Web Services (AWS) and Google, in the cloud computing sector. This was especially true for enterprise clients who rely heavily on Microsoft software for their core operations.
Cade is now assessing whether similar dynamics may be occurring in Brazil. The Brazilian authority aims to determine if Microsoft’s licensing strategies are creating comparable barriers to competition in the national cloud computing market. A key concern highlighted in Cade’s technical note is the role of Microsoft software as an “essential input” for certain corporate workloads. This status could make it difficult for competitors to attract or retain customers who are deeply integrated with Microsoft’s ecosystem.
It is important to note that this investigation is still in its early stages and does not represent a judgment on Microsoft’s conduct in Brazil. However, it signals growing scrutiny of dominant tech firms and their impact on market fairness, both in Brazil and internationally.
As the case unfolds, stakeholders in the Brazilian tech sector will be watching closely, as the outcome could have significant implications for how major software providers operate in the country’s increasingly competitive digital landscape.
Source: Olhar Digital
