|
CISPE has alleged that Microsoft's new contractual terms imposed
on Oct. 1 together with other practices are irreparably damaging
the European cloud computing ecosystem.
Amazon is the market leader in the cloud computing sector,
followed by Microsoft and Alphabet unit Google.
"Leveraging its dominance in productivity software, Microsoft
restricts choice and inflates costs as European customers look
to move to the cloud, thus distorting Europe's digital economy,"
CISPE secretary general Francisco Mingorance said in a
statement.
The company uses its dominance in productivity software to
direct European customers to its Azure cloud infrastructure to
the disadvantage of European rivals, CISPE alleged in its
complaint to the European Commission.
It alleged that Microsoft's anti-competitive practices included
discriminatory bundling and tying of its products,
self-preference pricing and locking in customers both on the
technical and competitive level.
Microsoft, which has been fined more than 1.6 billion euros
($1.6 billion) by the Commission in the previous decade for
various antitrust violations, said it is committed to addressing
valid licensing concerns and supporting a competitive
environment.
"The licensing changes we introduced in October give customers
and cloud providers around the world even more options for
running and offering our software in the cloud," a spokesperson
said.
Cloud service providers in Germany, Italy, Denmark and France,
two of whom are members of CISPE, have filed similar complaints
with the Commission in the past couple of years.
Microsoft subsequently amended licensing deals and other changes
to make it easier for cloud service providers to compete
starting Oct. 1 in a bid to stave off EU antitrust concerns.
Rivals Amazon.com, Alphabet's Google, Alibaba and Microsoft's
own cloud services however are excluded from the changes.
CISPE said the EU competition watchdog should tackle the issue
by applying the trade body's principles of fair software
licensing devised last year to Microsoft.
It said an independent European Observatory could be set up to
audit dominant software companies' licensing terms.
The Commission could also add another provision to newly adopted
tech rules, known as the Digital Markets Act, prohibiting cloud
computing gatekeepers from favouring their software
applications, CISPE said.
($1 = 0.9909 euros)
(Reporting by Foo Yun Chee, Editing by Jane Merriman and Louise
Heavens)
[© 2022 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
