The French cloud service OVHcloud has filed a lawsuit against Microsoft, accusing the software giant of abusing its dominant position and allegedly damaging competition.
The subject of the complaint was the peculiarities of Microsoft software licensing – in particular of products such as the Office suite. According to OVHcloud, Microsoft’s products perform significantly worse with other cloud services than with Azure, its own service, which makes competition much more difficult. Concerns of European authorities about the situation in the cloud services market are growing, and Microsoft, which traditionally avoids the attention of regulators, is increasingly being targeted: the company’s position in this segment cannot be considered dominant, but it has the ability to offset 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 Teams’ messaging system into Office. Last year, the German cloud provider Nextcloud filed a complaint about the integration of OneDrive storage into the Windows operating system.
A bill is being drafted in Europe that would give tech giants, including Microsoft, gatekeeper status and subject them to special rules for dealing with competitors and consumers. In addition, a law is being drafted that will oblige tech giants to put more effort into controlling online content.
Despite the active growth of the European cloud services market, the three largest American providers dominate here: Microsoft, Amazon and Google, which account for a 69% share according to analysts from Synergy Research Group. The largest local player is Deutsche Telekom with a 2% share, while the French OVHcloud has only 1%.