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Microsoft hit with Spanish startups' complaint about cloud practices

Economic Times

Economic Times · 1y ago

Microsoft hit with Spanish startups' complaint about cloud practices

Microsoft is facing a complaint from the Spanish Startup Association regarding alleged anti-competitive practices in its cloud computing services. The association, representing more than 700 startups in Spain, claims that Microsoft has leveraged its dominant position in the Operating Systems and productivity software markets to compel the use of its Azure cloud. The association further accuses Microsoft of imposing barriers to data portability and restricting competition through contractual conditions. They have called on the Spanish competition watchdog to investigate and ensure a fair and competitive market. This follows a similar complaint filed by the Cloud Infrastructure Services Providers in Europe (CISPE) to EU antitrust regulators last November.

Related News

Microsoft in talks to end trade body's cloud computing complaint

Economic Times

Economic Times · 1y ago

Microsoft in talks to end trade body's cloud computing complaint

Microsoft is engaging in discussions with the Cloud Infrastructure Services Providers in Europe (CISPE) trade group to address its antitrust complaint regarding its cloud computing licensing practices. The move is aimed at resolving the issue bilaterally and potentially avoiding a lengthy EU investigation that could result in fines and regulatory orders to change business practices. CISPE filed a complaint with the European Commission, alleging that Microsoft's contractual terms were negatively impacting Europe's cloud computing ecosystem. The discussions are in early stages, and both parties are exploring potential remedies.

South Africa to investigate Microsoft over cloud computing licensing practices

Economic Times

Economic Times · 1y ago

South Africa to investigate Microsoft over cloud computing licensing practices

The South African antitrust agency plans to investigate Microsoft over its cloud computing licensing practices, following a similar case in the European Union. Although Microsoft stated that it is unaware of any complaint filed by the South African competition authority, the source suggests that the investigation will resemble that of the EU antitrust case. This comes after rivals in several European countries, including Germany and France, raised concerns about Microsoft's new contractual terms.

European regulators crack down on Big Tech

Economic Times

Economic Times · 1y ago

European regulators crack down on Big Tech

European regulators are taking action against big technology companies. Apple has agreed to open its mobile payments system to competitors, ending a four-year investigation. The European Commission has also opened a new investigation into Apple over its contractual requirements for third-party app developers. Microsoft has given up its board observer seat at OpenAI after concerns were raised about merger rules regarding its investment. European regulators have charged Microsoft with illegally bundling its Teams app with its Office product. The European Commission has requested detailed information from Amazon regarding its compliance with digital service obligations. Meta has been charged for failing to comply with the Digital Markets Act. Facebook, Instagram, and Google are also being investigated for potential breaches of EU rules. Alphabet's Google has been fined in the past for using its price comparison shopping service to gain an unfair advantage. The EU has named 22 "gatekeeper" services from various tech companies and given them six months to comply with provisions aimed at making it easier for users to switch between services. In the UK, the Competition and Markets Authority is investigating Amazon and Microsoft's dominance in the cloud market. France and Italy have also taken action against Nvidia, Google, Facebook, and Meta for alleged anti-competitive practices and intellectual property rule violations. The Dutch privacy watchdog has recommended that government organizations stop using Facebook due to concerns about personal data usage. Spain's data protection watchdog has provisionally suspended two Meta products, and a group representing Spanish startups has made a complaint about Microsoft's cloud practices.

Microsoft clinches deal to settle CISPE antitrust complaint

Economic Times

Economic Times · 1y ago

Microsoft clinches deal to settle CISPE antitrust complaint

Microsoft has reached a settlement with CISPE, a group representing cloud providers including Amazon, over an antitrust complaint. The complaint alleged that Microsoft's new licensing terms were harming the European cloud computing ecosystem. The settlement includes Microsoft developing a product for CISPE members to run its software on their platforms with prices equivalent to Microsoft's. Microsoft will also compensate CISPE members for lost revenues from licensing costs. The settlement averts a potential EU antitrust investigation and brings more competition to the European cloud computing market.

Why are Google and Microsoft at loggerheads in the UK?

Economic Times

Economic Times · 1y ago

Why are Google and Microsoft at loggerheads in the UK?

Google has urged the UK's antitrust regulator, the Competition and Markets Authority (CMA), to take action against Microsoft, claiming that its cloud services business practices put rivals at a disadvantage. Google called for Microsoft to enable interoperability with other cloud services and be prohibited from withholding security updates from users who switch to other providers. This comes after the UK's communications regulator referred the cloud computing market to the CMA for investigation, expressing concerns about the positions of market leaders Amazon and Microsoft. The rivalry between Google and Microsoft extends to other areas such as online search and artificial intelligence.

Google steps up Microsoft criticism, warns of rival's monopoly in cloud

Economic Times

Economic Times · 1y ago

Google steps up Microsoft criticism, warns of rival's monopoly in cloud

Google Cloud has criticized Microsoft's cloud computing practices, accusing its rival of seeking a monopoly that could hinder the development of emerging technologies like generative artificial intelligence. Google is concerned that Microsoft is creating a controlled and owned "walled garden" with its Azure cloud platform, forcing customers to go exclusively to Microsoft. Google Cloud VP Amit Zavery called on antitrust regulators to intervene and prevent Microsoft's on-premise monopoly from extending into cloud computing. Microsoft dismissed the claims, highlighting healthy competition between cloud hyperscalers. Zavery also criticized Microsoft's one-sided deals with individual cloud vendors.

Microsoft thinks it might have made a breakthrough on its cloud monopoly case

Techradar

Techradar · 1y ago

Microsoft thinks it might have made a breakthrough on its cloud monopoly case

Microsoft is in discussions with the Cloud Infrastructure Services Providers in Europe (CISPE) to address its antitrust case in Europe. The case involves Microsoft's dominance in the cloud market and its alleged practice of locking customers into its own services. By reaching a deal with CISPE, Microsoft aims to avoid a full-on EU investigation and potential fines. CISPE represents 26 EU cloud providers and has filed a complaint with the European Commission regarding Microsoft's licensing terms. Both parties are actively exploring potential resolutions.

Microsoft to pay off cloud industry group to end EU antitrust complaint: report

Economic Times

Economic Times · 1y ago

Microsoft to pay off cloud industry group to end EU antitrust complaint: report

Microsoft is reportedly close to finalizing a deal with a cloud lobby group backed by Amazon to drop an antitrust complaint filed with the European Commission. The deal would involve the lobby group, Cloud Infrastructure Services Providers in Europe (CISPE), withdrawing its investigation request over Microsoft's cloud-licensing agreements. As part of the agreement, a multimillion-euro payment would be made to CISPE, with additional payments potentially made to individual companies. The settlement would also result in CISPE and its members refraining from filing legal complaints against Microsoft worldwide.

Microsoft issued cloud pricing ultimatum by EU states

Techradar

Techradar · 1y ago

Microsoft issued cloud pricing ultimatum by EU states

A group of European cloud infrastructure providers, known as CISPE, has issued an ultimatum to Microsoft, demanding an end to what they see as unfair competition. The group has accused Microsoft of engaging in discriminatory practices by offering discounts on its software when bundled with Azure cloud services, making it more expensive for competitors to run Microsoft products in their own clouds. CISPE has threatened legal consequences if negotiations with Microsoft do not result in a satisfactory resolution. This ongoing case adds to the existing scrutiny of Microsoft's cloud licensing terms by both the EU and the US FTC.

Google asks FTC to break up Microsoft's cloud deal with OpenAI: report

Economic Times

Economic Times · 7m ago

Google asks FTC to break up Microsoft's cloud deal with OpenAI: report

Google is reportedly seeking to have the U.S. government intervene and break up Microsoft's exclusive contract hosting OpenAI's technology on its cloud servers. This comes after the U.S. Federal Trade Commission raised concerns about Microsoft's business practices. Competitor tech companies such as Google and Amazon are also interested in hosting OpenAI's models to provide access for their own cloud customers, instead of relying on Microsoft's servers. The report mentions that customers purchasing OpenAI's technology through Microsoft may face additional charges if they don't already use Microsoft servers. Google, Microsoft, OpenAI, and the FTC have not yet provided a comment on the matter.

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