In a move that reflects the growing tensions in the tech sector, a group representing over 700 startups in Spain has filed a formal complaint with the country’s antitrust regulator against Microsoft, alleging anticompetitive practices in its cloud computing services.
The Spanish Association of Startups accused the US tech giant of abusing its dominant position in markets for operating systems and traditional productivity software, such as Microsoft Office and SQL Server, to push the use of its Azure platform. According to the complaint, Microsoft has set up artificial barriers that limit startups’ ability to compete fairly and effectively.
These barriers include restrictions on data portability and contractual conditions that restrict competition in software licenses, hindering the free choice of service providers and reducing startups’ ability to be resilient, innovate, and grow. The association has called on the Spanish competition authority to launch an investigation and take urgent measures to ensure a competitive market.
Carlos Mateo, President of the Spanish Association of Startups, emphasized in a statement the importance of maintaining a level playing field. “We believe that all companies should be able to compete on equal terms to not be left behind, both as customers and providers of this technology,” Mateo said.
This case adds to other concerns expressed at the European level. The Cloud Infrastructure Services Providers in Europe (CISPE), which includes members like Amazon, had previously lodged a complaint with EU antitrust regulators about Microsoft’s new contractual terms and other practices that they claim harm the European cloud computing ecosystem.
The European Commission and the UK Competition Authority are also investigating these practices, while global pressure on Microsoft continues to mount with inquiries in other jurisdictions, including a recent announcement that the South African Competition Commission plans to open a formal investigation.
These complaints and legal proceedings reflect a growing unease regarding Microsoft’s software licensing practices, which are alleged to disproportionately favor its own cloud infrastructure, Azure, at the expense of other cloud service providers, limiting customer choice and raising prices.
The situation underscores the importance of effective regulatory policies to ensure that the cloud technology market remains open and competitive, benefiting consumers and businesses alike.
References: CISPE and Reuters.