Switzerland’s competition watchdog has launched a preliminary investigation into Microsoft’s licensing fees following complaints from businesses and public-sector bodies about recent price increases, raising the prospect of a formal antitrust probe if concerns are confirmed.
The Swiss Competition Commission, known as Comco, said on Thursday that it is examining whether the pricing of Microsoft’s software products could amount to an unlawful restriction of competition under Swiss law.
Complaints over “significant” price hikes
Comco said it had received complaints from private companies as well as government agencies and public-sector organisations regarding “significant” increases in the cost of Microsoft product licences.
The scrutiny is focused in particular on Microsoft 365, a widely used software package across businesses and public institutions.
“The antitrust authority said it has received complaints from private businesses as well as many government agencies and public companies over significant price hikes of Microsoft’s product licenses, which may indicate an unlawful restriction of competition.”
In a statement, the regulator said the initial review is intended to determine whether the complaints point to conduct that could breach Switzerland’s Cartel Act.
“Should such indications be confirmed, this could warrant the opening of a formal investigation,” the agency, also known as COMCO, said.
A formal investigation would give the regulator broader powers to gather evidence and could ultimately lead to enforcement action if competition law violations are found.
Microsoft pledges cooperation with regulator
Microsoft said it would cooperate fully with the Swiss authority as the preliminary investigation proceeds.
“Microsoft is committed to complying with Swiss competition law and will cooperate with the Swiss Competition Commission in its preliminary investigation,” a Microsoft spokesperson said.
The US technology group is one of the largest software resellers in Switzerland and plays a significant role in the country’s enterprise technology landscape.
It operates local Azure data centres designed to meet the needs of clients with strict data protection and regulatory requirements, including financial institutions and government bodies.
Microsoft’s investments in cloud computing and artificial intelligence have further strengthened Switzerland’s importance within its European operations, making the country a key hub for serving corporate and public-sector customers.
Part of broader global scrutiny
The move by Swiss authorities comes amid growing regulatory scrutiny of Microsoft’s software and cloud services in several jurisdictions.
Earlier this month, Brazil’s competition regulator announced that it had opened an investigation into the company’s software and cloud computing practices.
Comco said that if its preliminary assessment concludes that Microsoft’s higher licensing fees restrict competition within the meaning of Swiss law, it would escalate the case to a full investigation.
Such a step would mark a significant development, particularly given the widespread reliance on Microsoft products by Swiss businesses and public institutions.
For now, the regulator has not set a timeline for completing its initial review.
The announcement underscores ongoing concerns among competition authorities globally about the market power of large technology companies and the impact of pricing decisions on customers with limited alternatives.
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