French cloud service OVHcloud has filed a complaint against Microsoft, accusing the software giant of abusing its dominant position, allegedly damaging competition.
The subject of the complaint was the peculiarities of Microsoft software licensing – in particular, products like the Office suite. According to OVHcloud, Microsoft’s products perform significantly worse with other cloud services than with Azure, the company’s own service, and this makes competition much more difficult. European authorities’ concern about the situation in the cloud services market is growing, and Microsoft, traditionally avoiding the attention of regulatory authorities, is increasingly being targeted: the company’s position in this segment cannot be considered dominant, but it has the opportunity to compensate for this through other products.
In 2020, Slack Technologies, the owner of the popular business messenger, filed a complaint with the EU that Microsoft had integrated the Teams messaging system with Office. Last year, German cloud provider Nextcloud filed a complaint about OneDrive storage integration with the Windows operating system.
A bill is currently being drafted in Europe that will grant tech giants, including Microsoft, the status of “gatekeepers” and subject to special rules for interacting with competitors and consumers. In addition, a law will be drafted requiring tech giants to make more efforts to control online content.
Despite the active growth of the European cloud services market, the three largest American providers dominate here: Microsoft, Amazon and Google, which, according to analysts from Synergy Research Group, account for a share of 69%. The largest local player is Deutsche Telekom with a 2% share, while the French OVHcloud has only 1%.