Breach of Microsoft Partner Agreement?

Hello,

I represent a Microsoft CSP partner and would appreciate guidance regarding a current customer situation.

An end customer currently holds their Microsoft licenses through another CSP partner (the “source partner”). Prior to the NCE renewal deadline and contract end date, the end customer formally instructed the source partner to cancel all licenses. This request was not actioned.

Subsequently, the end customer requested a change of licensing – specifically upgrading from Microsoft 365 Business Standard to Microsoft 365 Business Premium while simultaneously reducing the number of seats. This request was also declined by the source partner.

The cancellation window has now passed, leaving the customer locked into an agreement with an incorrect license mix and an excessive number of seats.

We have attempted to initiate a partner transfer request, but this has also been rejected by the source partner.

Given these circumstances, we would like to understand:

• Whether the source partner’s actions could be considered a breach of the Microsoft Partner Agreement or applicable CSP/NCE terms
• What options, escalation paths, or tools are available to support the end customer in correcting this situation

Any guidance or clarification would be highly appreciated.