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Spanish Startup Association Slams Microsoft’s Cloud Practices

 |  May 7, 2024

The Spanish Startup Association has lodged a complaint against Microsoft with the Spanish antitrust regulator. The grievance, filed on Tuesday, accuses the U.S. tech giant of engaging in allegedly anticompetitive practices within its rapidly expanding cloud computing services division.

Microsoft, currently ranked second in the cloud computing sector behind Amazon, faces allegations of leveraging its dominant position in operating systems and traditional productivity software to push its Azure cloud services. The complaint specifically points to barriers to data portability and restrictive contractual conditions that hinder fair competition, according to documents reviewed by Reuters.

Representing over 700 startups in Spain, the association asserts that Microsoft’s practices limit choice and flexibility, stifling the ability of startups to innovate and grow. Carlos Mateo, president of the Spanish Startup Association, emphasized the importance of a level playing field, stating, “We believe that all companies should be able to compete in an environment of equality so as not to be left behind either as customers or as companies providing this technology.”

Read more: Google Says Microsoft Engaging In Anti-Competitive Cloud Practices

This complaint echoes broader concerns within the European tech community. Cloud Infrastructure Services Providers in Europe (CISPE), which counts Amazon among its members, previously raised objections with EU antitrust regulators over Microsoft’s contract terms and other practices, arguing they were detrimental to the European cloud computing ecosystem.

The European Commission has initiated investigations into Microsoft’s practices, seeking input from cloud rivals regarding the company’s data access requests. Meanwhile, the UK Competition and Markets Authority is conducting its own probe into the sector.

Source: Reuters