- Microsoft defends its cloud practices, highlighting customer choice and flexibility.
- A call for investigation by the Spanish competition watchdog to ensure fair market competition.
- European concerns raised by the CISPE complaint to EU antitrust regulators.
Microsoft has been criticised by a Spanish startup group for its cloud practices, following a trade group’s EU complaint. The US tech giant, which ranks second in the cloud computing sector, is expected to close the gap as generative AI features powered by OpenAI attract business users. The complaint follows a trade group’s EU complaint.
Complaint by the Spanish startup association
The Spanish Startup Association, representing more than 700 startups in Spain, has raised concerns about Microsoft’s alleged anti-competitive practices. According to the association, Microsoft has leveraged its dominant position in operating systems and traditional productivity software markets to promote its Azure cloud services. Additionally, the association claims that Microsoft has imposed artificial barriers that restrict fair competition for startups, including limitations on data portability and contractual conditions that impede software license competition.
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Microsoft’s response and defence
In response to the allegations, Microsoft defended its cloud practices by stating that it offers customers the choice and flexibility to switch to other cloud providers at no additional cost. The company also highlighted that its licensing terms enable customers and other providers to run Microsoft software on any cloud platform. Microsoft expressed a willingness to engage with the Spanish Startup Association to gain a better understanding of their concerns and address them accordingly.
Call for investigation and urgent measures
The Spanish Startup Association has called on the Spanish competition watchdog to launch an investigation and implement urgent measures to ensure a competitive market environment. President Carlos Mateo emphasised the importance of equal competition for all companies in the technology sector to foster innovation and growth without hindrance.
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European concerns and regulatory actions
Cloud Infrastructure Services Providers in Europe (CISPE), including Amazon, have lodged a complaint with EU antitrust regulators regarding Microsoft’s new contract terms and practices that are allegedly harming the European cloud computing ecosystem. The European Commission and the UK Competition and Markets Authority are conducting inquiries to examine Microsoft’s data request practices and their potential impact on market competition.
