Microsoft’s President, Brad Smith, reiterated the company’s respect for European laws, including the landmark Digital Markets Act, which seeks to limit the power of Big Tech. His comments came in response to tensions between the White House and the European Commission, especially after the EU imposed fines of 700 million euros on Apple and Meta Platforms for violations related to the Digital Markets Act. Smith emphasized that Microsoft understands and adheres to European laws, much like how local laws are followed in the U.S. and other regions around the world. He expressed Microsoft’s commitment to not only building digital infrastructure for Europe but also respecting European regulations on competition and other aspects of its operations.
Microsoft, which faced significant antitrust fines in the EU over two decades ago, is currently navigating another EU investigation related to its Office-Teams pricing, offering adjustments in hopes of avoiding penalties. Smith also addressed ongoing concerns in Europe about the dominance of U.S. tech giants in cloud computing, particularly around their involvement in European government tenders. These concerns have been amplified by issues regarding the privacy of European users’ data. He assured that, should any government mandate a suspension of Microsoft’s cloud operations in Europe, the company would vigorously contest such actions through all available legal channels, including litigation.
To strengthen its commitment to European operations, Microsoft plans to increase its data center capacity in Europe by 40% over the next two years, with expansion efforts focused on 16 countries. The company’s efforts are aimed at boosting its European presence and responding to growing concerns about data sovereignty and security. Smith also outlined the company’s decision to ensure that its European data center operations are overseen by a board of directors exclusively composed of European nationals, operating under European law. This move is designed to solidify Microsoft’s commitment to the European market and its regulatory framework. The company’s plans, combined with previous investments, are expected to more than double its European data center capacity between 2023 and 2027, marking a significant step in its strategy to expand its operations and meet European regulatory standards.
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