German state Bavaria cancels Microsoft contract to go open source
The administration of the largest German state, Bavaria, is moving away from Microsoft software to pursue a “sovereign basic workspace.”
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The administration of the largest German state, Bavaria, is moving away from Microsoft software to pursue a “sovereign basic workspace.”
- The largest German state, Bavaria, has canceled a nearly billion-euro contract with Microsoft.
- The state administration will pursue a “sovereign basic workspace” based on open-source components.
- Bavaria’s Digital Minister Fabian Mehring says the decision allows the state to protect itself from price hikes and ensure data privacy.
The Bavarian Ministry for Digital Affairs has officially announced the cancellation of a planned framework agreement with American tech giant Microsoft intended to implement its productivity suite across the state administration.
Regional news website Mittelstand in Bayern reports that Microsoft services would have cost nearly €1 billion ($1.16 billion) over a five-year period.
Instead, Bavaria will pursue a “sovereign basic workspace” based on open-source components.
The decision comes after a months-long power struggle between the state’s Finance Ministry, led by Albert Füracker, who wanted to consolidate existing contracts and secure discounts, and Digital Minister Fabian Mehring, who pushed for open source.
Mehring said switching to open source would ensure continued use of services in a crisis, protect Bavaria from price increases, and allow prioritizing data security, according to Mittelstand in Bayern.
Bavaria’s move to open source is part of a wider trend in Europe, where local and federal governments are breaking ties with Microsoft and other American technologies.
In May 2026, a new ruling coalition in Bavaria’s capital, Munich, committed to making open-source software the standard for municipal software procurement, which will result in the city administration phasing out Microsoft.
The German government announced in March that all public-sector documents will be issued only in open formats, excluding proprietary formats like Microsoft Word.
Bavaria is following the footsteps of Germany’s northernmost state, Schleswig-Holstein, where 80% of state government workplaces had already switched from Microsoft software to open-source alternatives.
Europe’s bid to protect sensitive data
While migration to open source is expected to cut costs, the break with American tech is primarily driven by concerns about data privacy.
The US Cloud Act compels American companies to hand over data of citizens of other countries upon request from US law enforcement.
Microsoft was recently accused of leaking Dutch civil servants’ data – mails, minutes, and invitations – to the US House of Representatives.
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The affected employees are involved in implementing the EU’s digital regulations, which have been fiercely criticized by the Donald Trump administration.
The potential “kill switch” scenario, in which the US government orders American companies to disable their services overseas, is also something keeping Europeans up at night.
A recent study suggests that most European defense agencies or ministries rely on US cloud providers, making them vulnerable to a “kill-switch.”
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