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.
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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. The only way to defeat nation states and trans-national criminal organizations is for the government to ensure that the IT market for cyber security is as competitive as possible and customers have the freedom to choose.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.” This is particularly critical in the market for cyber security solutions since hackers are innovating every day, leveraging new strategies, new tactics, and new technologies to support their illegal campaigns. We support the Principles of Fair Software Licensing and policies that encourage innovation, competition, and licensing practices that give customers the freedom to mix and match solutions from a wide variety of vendors. Overly restrictive, abusive licensing agreements from IT companies with market power, on the other hand, impose costs on government and corporate customers of reduced innovation and long-term price increases.
Competition drives innovation and ensures that customers get the benefit of fair pricing. Consumers benefit from a competitive, dynamic information technology marketplace.
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