AWS and 23 others accuse Microsoft of antitrust behaviour
Microsoft is 'irrevocably' harming European cloud computing ecosystem
A trade group representing 24 cloud computing providers in Europe has filed an antitrust complaint with the European Commission's Directorate-General (DG) over Microsoft's licencing of software in the cloud.
CISPE, or Cloud Infrastructure Service Providers in Europe, which has filed the complaint, comprises some of Microsoft's fiercest competitors in the cloud hosting industry, including Amazon Web Services (AWS).
AWS, Microsoft and Google control nearly three-quarters (72%) of the European corporate cloud storage market, while local players' share has fallen from 27% to only 13%.
Francisco Mingorance, the secretary general of CISPE, said in a statement that Microsoft leverages its dominant position in productivity software in a manner that limits choice and raises prices as European clients look to shift to the cloud, thus distorting Europe's digital economy.
According to CISPE, Microsoft's new contractual conditions - which went into effect on the 1st October - are dealing 'irrevocable' harm to the European cloud computing ecosystem.
It claimed that Microsoft was driving European consumers to its Azure cloud infrastructure at the expense of its competitors in Europe by abusing its dominance in productivity software.
According to the complaint, Microsoft's anti-competitive behaviour includes discriminatory product bundling, self-preference pricing and customer lock-in on both a technical and competitive level.
Accusers say Microsoft's licencing is anti-competitive
The new complaint follows a separate filing from CISPE members OVHcloud and Aruba, both of which claimed that Microsoft's actions are anti-competitive.
That complaint focused on Microsoft's licencing operations. It alleged that Microsoft had made it more expensive for users to move from Azure to another cloud service offered by rival firms. It also claimed that Microsoft's software does not perform as well when used on their platforms, making it difficult for other cloud providers to compete with Microsoft.
OVHcloud said that by exploiting its dominant position in the cloud computing services industry, Microsoft had been undermining fair competition and limiting consumer choice.
Microsoft replied that cloud providers have many alternatives when it comes to providing cloud services to their clients using Microsoft software, whether bought by the customer or the partner.
In an effort to allay EU antitrust concerns, Microsoft later modified its licence agreements and made some changes to make it simpler for cloud service providers to compete, beginning 1st October.
Through its new complaint, CISPE is now looking for remedies from the European Commission that will benefit European providers and clients of cloud infrastructure services.
"We have filed this sector complaint to rectify the harms suffered by vendors and customers alike as a result of unfair software licencing practices," said Mingorance.
The trade group now expects DG to act immediately, issue a Statement of Objections, and open a formal case against Microsoft in order "to defend the robust cloud ecosystem Europe needs and deserves," CISPE added.
"These matters are critical to the survival of a competitive market for cloud infrastructure in Europe."