- Cloud Infrastructure Services Providers in Europe has announced that the organization files a complaint against Microsoft.
- Cloud Infrastructure Services Providers in Europe consist of 25 cloud infrastructure companies from Europe, including Amazon Web Services.
- The complaint accuses Microsoft of discriminatory bundling and tying of its products, self-preference pricing, and locking customers in both the technical and competitive levels.
Cloud Infrastructure Services Providers in Europe, shortly CISPE, has announced its filing a complaint against Microsoft. The organization accuses Microsoft of anti-competitive practices of leveraging its dominance in productivity software to restrict choices and inflate costs for European customers.
“Locking cloud customers”
CISPE is an organization with members of 25 cloud infrastructure companies in Europe and this list includes Amazon Web Services. There are also some big names in CISPE like OVHcloud, Aruba, and Leaseweb. According to the blog post they have recently published, the anti-competitive practices include discriminatory bundling and tying of its products, self-preference pricing, and locking customers in both the technical and competitive levels.
« Recent announcements, blogs and FAQ documents published by Microsoft in an effort to head-off market investigations have not provided the detail, clarity or assurance that it truly intends to bring a swift end to its anti-competitive licensing practices. On the contrary, the new contractual terms imposed unilaterally by Microsoft on 1st October 2022 add new unfair practices to the list. Microsoft’s ongoing position and behaviours are irreparably damaging the European cloud ecosystem and depriving European customers of choice in their cloud deployments. CISPE feels it has no option but to become a formal complainant and to urge the European Commission to act. »
The company has put some effort to fix those issues this year, however, CISPE thinks that those changes are insufficient, adding that Microsoft’s licensing terms are not clear and intelligible. Earlier this year, OVHcloud together with Aruba filed a cloud complaint as well.
Microsoft has received over a total of €1.6 billion fine bills of antitrust from the European Commission through the last ten years.