Microsoft Tries to Fix EU Cloud Mess with New Offer to CISPE

If you’re in Europe and watching Microsoft’s cloud efforts closely, this news is for you. The company has just handed CISPE a new offer in hopes of settling a long-running dispute with European cloud providers.

This comes after Microsoft missed a key deadline to launch its promised EU-specific Azure version, called Azure Local. The launch was supposed to happen under a 2023 agreement, but delays forced both sides back to the table.

According to The Register, Microsoft’s new proposal arrives within the timeline laid out in the updated July 2024 memorandum. CISPE confirmed receipt and said it plans to respond in the coming weeks.

The offer reportedly includes reduced SPLA fees, potentially undoing a previous 10 percent hike. Microsoft may also drop requirements that asked providers to share their customer lists — a sticking point in earlier talks.

EU cloud watchdog still cautious

Even with this new gesture, trust hasn’t been fully restored. The ECCO, an independent body monitoring competition in the EU cloud space, issued Microsoft its second straight Amber rating in May 2025. That signals that concerns are still ongoing.

Still, ECCO acknowledged that Microsoft has remained cooperative, and CISPE’s Secretary General Francisco Mingorance made it clear the door isn’t closed.

“It is disappointing that the proposed product did not deliver, but this is not the end of the agreement,” he said at the time. Whether this new proposal is enough to move things forward remains to be seen, but at least, talks are still active.