![]() ![]() complained to the EU about Microsoft’s bundling of its rival Teams workplace-collaboration product with its popular Office software. For instance, in 2020, San Francisco-based business-messaging app Slack Technologies Inc. Even in the 1990s, Microsoft got in trouble for almost the same reason - for bundling practices in its operating system.īesides the complaint by OVHcloud and other unnamed companies, there have also been two other complaints in recent years, within the region itself, alleging Microsoft for bundling its cloud products in an anticompetitive manner. TECH GIANTS Microsoft’s Activision acquisition – what it means for the metaverse & beyondĮven though when it comes to cloud market share, Microsoft doesn’t hold a dominant position, there is a concern about the company bundling its historical strength in areas like business applications with its fast-growing cloud business. We’re continuously evaluating how we can best support partners and make Microsoft software available to customers across all environments, including those of other cloud providers,” the company said in a statement. “Cloud providers enjoy many options to provide cloud services to their customers using Microsoft software, whether purchased by the customer or the partner. Microsoft on the other hand, have yet to confirm on the complaint, but a spokesperson said, as opposed to OVHcloud’s claims, European cloud companies are in fact building successful businesses using Microsoft products. “Through abusing its dominant position, Microsoft undermines fair competition and limits consumer choice in the cloud computing services market,” a spokeswoman for OVHcloud told WSJ. That too is mainly attributed to its ‘playing-it-safe’ nature following its own antitrust battles two decades ago when the US Department of Justice and the EU sued Microsoft for its business practices. Microsoft in particular has been fortunate enough to have not been at the center of attention, unlike its fellow rivals. Otherwise, cloud service providers like Inc, Microsoft Corp and Alphabet Inc.’s Google are often lightly regulated compared with some other crucial industries. The lawsuit came amidst a heightened government oversight in the cloud market of late, especially when it comes to European policymakers and lawmakers. Thus, more specialized EU companies can't compete on merit, as the key to success is not a good product but the ability to distort competition and block market access.As reported by the Wall Street Journal quoting people familiar with the matter, the complaint focuses on the way Microsoft licenses its products, such as its Office productivity suite, “that may make it more expensive to use cloud services that compete with Microsoft’s Azure cloud.” Nextcloud states that Microsoft has outright blocked other cloud service vendors by leveraging its position as gatekeeper to extend its reach in neighboring markets, pushing users deeper into its ecosystems. While self-preferencing is not illegal per se under EU competition laws, if a company abuses its dominant market position, it can break the law. Microsoft has done this not by any technical advantage or sales benefits but by heavily favoring its own products and services, self-preferencing over other services. ![]() ![]() Specifically, Microsoft has grown its EU market share to 66%, while local providers' market share declined from 26% to 16%. Nextcloud claims that by pushing consumers to sign up and hand over their data to Microsoft, the Windows giant limits consumer choice and creates an unfair barrier for other companies offering competing services. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |