New Trouble For Microsoft: Spanish Startups’ Complaint On Cloud Practices (Image: microsoft.com)In the rapidly evolving cloud computing sphere, tech major Microsoft finds itself embroiled in a fresh bout of controversy as a Spanish startup group lodges a formal complaint against the tech giant’s cloud practices. This development adds to the growing scrutiny Microsoft faces over its expanding cloud services, echoing concerns raised by other industry players.
The Spanish Startup Association, representing over 700 startups in Spain, has submitted a complaint to the Spanish antitrust regulator, outlining alleged anti-competitive behaviors by Microsoft. The complaint accuses Microsoft of leveraging its dominant position in operating systems and traditional productivity software to promote its Azure cloud platform. It alleges that Microsoft has imposed artificial barriers that hinder fair competition and limit startups’ ability to thrive in the market, reports Reuters.
According to documents seen by the news agency, the association highlights several contentious practices by Microsoft, including barriers to data portability and contractual conditions that restrict competition in software licenses. These constraints, as outlined in the complaint, undermine startups’ freedom to choose service providers, thereby impeding their flexibility and innovation potential.
Carlos Mateo, president of the Spanish Startup Association, emphasized the importance of fostering an environment of equality for all companies to compete effectively in the technology sector. He stressed the need for regulatory intervention to ensure a level playing field and prevent market distortions that could stifle innovation and growth.
This complaint from Spanish startups adds to Microsoft’s regulatory woes in Europe. Cloud Infrastructure Services Providers in Europe (CISPE), a trade group representing major cloud players including Amazon, lodged a complaint with EU antitrust regulators last November. CISPE raised concerns about Microsoft’s new contract terms and other practices, alleging detrimental effects on the European cloud computing ecosystem.
The European Commission has initiated investigations into Microsoft’s practices, soliciting feedback from cloud rivals regarding the company’s handling of customer data requests. Concurrently, the UK Competition and Markets Authority has launched its own inquiry into the cloud computing sector, signaling broader regulatory scrutiny across Europe.
Microsoft, currently positioned as the second-largest player in the cloud computing sector behind market leader Amazon, has been rapidly expanding its cloud offerings. The integration of generative AI features powered by OpenAI’s technology has bolstered Microsoft’s appeal to business users, fueling its ambition to close the gap with its competitors in the near future.