The Council for Economic Defense (CADE), Brazil’s competition authority, opened a new antitrust inquiry into Microsoft’s cloud and software licensing in Brazil, testing whether the same licensing tactics flagged in the UK are distorting competition for Brazilian cloud customers. The move puts Microsoft’s fast-growing Brazilian cloud footprint, including multibillion‑dollar investments, under fresh regulatory scrutiny just as assessments of “strategic market status” advance in Europe, Data Center Dynamics January 6 reports.
Brazil’s Inquiry, UK Linkage
The Brazilian “Administrative Inquiry” into Microsoft’s cloud computing and software licensing practices is drawing directly on findings from the UK Competition and Markets Authority (CMA). CADE’s technical note cites the CMA’s conclusion that Microsoft’s licensing practices have had “significant negative effects” on the ability of rivals, particularly AWS and Google Cloud, to compete for customers whose workloads depend on Microsoft software as an essential input.
CADE argued that enterprise software and cloud markets operate with globalized dynamics, including similar technical standards, architectures, and commercial strategies across jurisdictions. Because Microsoft, AWS, and Google Cloud apply global licensing policies in Brazil, CADE said restrictive practices identified in the UK are likely to be replicated in the Brazilian market, warranting investigation into whether similar anti‑competitive effects are occurring locally.
Scope, Timing, Parallel Scrutiny
CMA wrapped its initial investigation in July 2025, finding that both Microsoft and AWS warranted further investigation for potential “strategic market status,” with those probes expected to conclude in early 2026. In parallel, CADE’s new case gives Microsoft until January 12 to respond to a detailed questionnaire on its current licensing practices, signaling the Brazilian authority is moving quickly off the back of the UK’s work.
This is not Microsoft’s only licensing‑related exposure. The Cloud Infrastructure Service Providers in Europe (CISPE) group previously pursued concerns about Microsoft’s behavior before that dispute was resolved. In the US, Microsoft reportedly faces related discussions with the Federal Trade Commission over its cloud and AI practices.
Brazil’s Cloud Footprint
The inquiry lands as Microsoft continues to scale its Brazilian cloud infrastructure. The company currently operates two cloud regions in the country, one in Rio de Janeiro and one in São Paulo. In September 2024, Microsoft announced a USD 2.7 billion investment plan to expand its cloud and AI infrastructure in Brazil.
CADE’s framing connects that local growth to global conduct, positioning Brazil as another test case for how cloud licensing structures affect local competition and customer choice. The authority was explicit that if UK‑identified restrictions are being replicated, similar anti‑competitive impacts on Brazilian customers and cloud rivals are likely.
What This Means for ERP Insiders
Cloud licensing can be a regulatory battleground that directly affects ERP deployment options. With CADE probing whether Microsoft’s licensing terms disadvantage AWS and Google for Microsoft‑dependent workloads, CIOs and architects may see greater regulatory pressure for more neutral licensing structures that expand where ERP and adjacent workloads can run, especially in hybrid and multi‑cloud designs.
Global findings are increasingly portable into local enforcement. CADE’s decision to build its case on CMA analysis shows that once one jurisdiction crystallizes concerns about a cloud provider’s licensing, other regulators can quickly bring that logic into their own markets. ERP vendors and partners should assume that licensing patterns scrutinized in one region may face copycat investigations elsewhere.
Local cloud investments will not insulate providers from conduct risk. Microsoft’s presence in Brazil and USD 2.7 billion expansion plan highlight that even large, locally anchored infrastructure commitments do not offset concerns about how software licensing shapes competitive dynamics. Cloud region presence and investment are only part of the equation; licensing transparency and workload portability are becoming equally important in regulatory and customer evaluations.
