This illustrated photo shows the Microsoft logo displayed on the smartphone screen. (Sheldon Cooper/SOPA Image/LightRocket, Getty Images)
Microsoft's Azure cloud business has been cleared by South Africa's antitrust watchdog, amid growing concerns from regulators around the world that the U.S. tech giant is abusing its market power and crowding out competitors. It is expected that he will be hit hard by the accusations.
The South African Competition Commission plans to accuse Microsoft of charging high fees for companies to switch cloud licenses to other vendors, said a person familiar with the filing, who spoke on condition of anonymity. .
The move will likely set the stage for a legal battle within days and could ultimately result in fines of up to 10% of the company's revenue in the African country.
Microsoft's Azure cloud business has also been targeted by other global regulators, including the European Union, and is currently the subject of an informal investigation by the watchdog.
Britain's competition regulator has also launched an investigation into the cloud market, in part looking into how Microsoft's Azure terms may restrict competition.
Microsoft did not respond to requests for comment. South African regulators declined immediate comment.
Like regulators around the world, South Africa's watchdog has cracked down on alleged abuses of market power by Big Tech and corporations in recent years.
Last year, Google was ordered to improve the visibility of South African small businesses in its search results and pay for training for its small platform.
Authorities are currently investigating whether artificial intelligence models, digital and social media platforms managed by services such as Microsoft's Bing, are limiting the profits of news and media companies in the country.