The CISPE trade group lodged its complaint with EU antitrust regulators. That said, Microsoft is once again the victim of an antitrust complaint over its cloud computing practices.
CISPE attacks Microsoft for its cloud computing practices
Updated statements from CISPE miserably affect the giant Microsoft. In fact, according to the group, the news contractual conditions and other companies’ practices are irreparably damaging the European cloud computing ecosystem. Francisco Mingorance, Secretary General of CISPE, said: “By leveraging its dominance in productivity software, Microsoft is limiting choice and driving up costs as European customers look to move to the cloud, distorting Europe’s digital economy.” Namely that Microsoft, after Amazon, occupies a significant market share of cloud computing, followed by Google Alphabet.
CISPE continues to point the finger at Microsoft. According to its complaint to the European Commission in particular, the group says Microsoft is using its dominance in productivity software. And this, to lead EU customers in its Azure cloud infrastructure by trampling its rivals in the country. The claims were clear: advantageous prices, technical and competitive customer lock-in. And that’s not all, CISPE also accuses Microsoft of discriminatory bundling and tying of its products in its anti-competitive practices.
Thunder strikes the same tree a second time
The previous decade, if you think back, Microsoft was fined more than 1.6 billion euros by the Commission. At the time, he was charged with various violations of antitrust laws. So Microsoft said it would commit to fixing the issues with valid licenses and support a competitive environment. “The licensing changes we introduced in October give customers and cloud providers around the world even more options to run and deliver our software in the cloud,” according to a company spokesperson.
Subsequently, Microsoft changed license agreements and made other changes to make it easier for cloud service providers to compete. The goal is actually to avoid the EU’s antitrust problems. However, Amazon, Google Alphabet, Alibaba as well as Microsoft’s own cloud services are excluded from these changes.
Measures for Microsoft?
According to CISPE, the EU’s competition watchdog should take responsibility for this problem with Microsoft on its cloud computing practices. For this, the group proposed an application of the principles software license fair. Similarly, he said that one could consider creating one European Observatory independent. This will be responsible for revising the license terms of the main software publishers.
On the other hand, a different provision must also be applied to cloud computing controllers, according to CISPE. This is done to complement the recently passed regulations known as the “Digital Markets Act.”