Cloud computing: OVHcloud buries hatchet in antitrust dispute with Microsoft
In addition to the cloud association CISPE, the French cloud service provider OVHcloud has also agreed to drop its competition complaint against Microsoft.
(Image: gemeinfrei)
Microsoft has reached an agreement with the French cloud service provider OVHcloud in a long-running antitrust dispute. This was reported by the Politico portal. OVHcloud will therefore withdraw the complaint it filed with the EU Commission's Competition Division in summer 2021 against the US software giant for abusing its dominant market position. The complaint focused on the way in which Microsoft markets its products such as the Office package with Word, Outlook and Excel and links them – under particularly favorable conditions – to its own Azure cloud infrastructure.
According to the report, the deal will enable OVHcloud users to use Microsoft solutions more easily with the cloud provider of their choice. A spokesperson for the French company confirmed to Politico that both sides had reached an agreement that included "several changes to the practices implemented by Microsoft". The complaint will therefore now be formally dropped. The US company already offered to amend its cloud license terms last year in the face of increasing complaints from competitors. This agreement in principle is said to have paved the way for the settlement.
However, OVHcloud is not yet completely satisfied. "Although this agreement leads to concrete progress for the entire European cloud ecosystem, there is an urgent need for further action," emphasized the provider's spokesperson. "All anti-competitive practices" by other hyperscalers such as Amazon with AWS or Google "in the EU cloud market must be effectively put to an end." A Microsoft representative explained: "We are pleased that we have reached this agreement and addressed OVH's concerns." Along with OVHcloud, Italian data center operator Aruba and a Danish cloud industry association approached the Commission in 2021. They too will reportedly not pursue their complaint.
Competition action by the Commission is in the stars
Just last week, it was announced that the industry association Cloud Infrastructure Service Providers in Europe (CISPE) was withdrawing its separate competition complaint against Microsoft to the Commission. Here too, the US giant promised to correct its contractual clauses for its own cloud services. According to reports, it will also pay around 20 million euros to CISPE. The Commission's competition authority has been investigating since May 2023 whether Microsoft is exploiting its market power to drive competitors out of the highly competitive cloud business. The recent withdrawals make it less likely that the Brussels-based government institution will file an official competition complaint.
Nevertheless, the US software company continues to face increasing pressure from regulatory authorities across Europe. Investigations into its cloud services are still ongoing in the UK and Spain, among others. In November 2021, the German service provider Nextcloud also announced that it had filed a complaint against Microsoft with the German Federal Cartel Office. The Federal Cartel Office has been investigating the US company's market power in general since March 2023. The Coalition for Fair Software Licensing criticized the CISPE case, saying that the agreement was "Microsoft's latest attempt to evade regulatory scrutiny".
(mid)
