Swiss regulator probes Microsoft licensing fees

Switzerland’s competition commission has opened a preliminary probe into Microsoft’s licensing fees after receiving complaints from private companies, government agencies, and public firms about sharp price increases.

The authority, known as COMCO, said these price hikes may suggest potential violations of competition rules.

If the initial findings support these concerns, COMCO may launch a formal investigation.

Microsoft said it will cooperate with the Swiss regulator during the inquiry.

🔗 Source: Reuters

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Implications, context, and why it matters.

Pricing harmonization or monopoly abuse? Swiss regulator reviews Microsoft licensing after price complaints

Switzerland’s Competition Commission (COMCO) opened a preliminary probe into Microsoft’s licensing fees after complaints about price hikes from private businesses, government agencies, and public firms 1. COMCO said the increases may break competition law 1. A formal case could follow 1.
Microsoft set a global pricing policy that cut Swiss franc prices for Microsoft 365 and Dynamics 365 by 9% on Sept. 1, 2023 2. It now reviews local prices twice a year based on exchange rates 2. Azure cloud prices change monthly and did not get that cut 2. Regulators have not named the affected products or segments 1.
New Commerce Experience (NCE), which uses fixed terms with no mid-term downgrades, has reduced pricing flexibility for customers 2. COMCO has not linked the preliminary inquiry to NCE 1.

Swiss enterprises and agencies may ramp up software asset management and alternative licensing

Swisscom is a Swiss telecom and IT provider 3. It says it is Switzerland’s only Azure Expert Managed Services Provider (MSP) and the country’s largest Microsoft partner with 250+ certified employees 3. The firm could see more demand for Software Asset Management (SAM) and FinOps (cloud financial operations) consulting as organizations reassess Microsoft spend 3.
Regulated firms and public bodies may seek licensing optimization to navigate NCE restrictions (Microsoft’s newer subscription model with less mid-term flexibility) and cut costs 3. Providers that offer license consulting, compliance audits, or hybrid cloud plans tailored to Swiss data sovereignty requirements (rules that require certain data to stay in-country or under specific controls) could benefit soon 3.
The probe adds urgency for Swiss enterprises to test multi-cloud plans and alternative productivity suites (office software). IT consultancies that focus on cloud migrations could gain, along with vendors offering Microsoft alternatives with comparable features at predictable prices.