Spanish startups file complaint against Microsoft regarding cloud practices.

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On Tuesday, a Spanish startup group filed a complaint against Microsoft with Spain's antitrust regulator, adding to the growing concerns over the tech giant's expanding cloud services. Despite being ranked second in the cloud computing sector, Microsoft is anticipated to narrow the gap with market leader Amazon, especially with the introduction of generative AI features powered by OpenAI's technology, which are appealing to business users.

Representing over 700 startups in Spain, the Spanish Startup Association accused Microsoft of various allegedly anti-competitive practices in recent years. These practices reportedly include leveraging its dominant position in operating systems and traditional productivity software to promote its Azure cloud, as well as imposing artificial barriers that hinder startups' ability to compete fairly.

Microsoft defended its cloud practices, asserting that it offers choice and flexibility for customers to switch to another cloud provider at no cost and enables the running of Microsoft software on any cloud through its licensing terms. The company expressed willingness to address the concerns raised by the Spanish Startup Association.

The association urged the Spanish competition watchdog to investigate the matter promptly and implement measures to ensure a competitive market environment. Carlos Mateo, president of the Spanish Startup Association, emphasized the importance of a level playing field for all companies involved in the technology sector.

This complaint follows a previous one filed by the Cloud Infrastructure Services Providers in Europe, including Amazon, to EU antitrust regulators, concerning Microsoft's new contract terms and other practices perceived as detrimental to the European cloud computing ecosystem. Both the European Commission and the UK Competition and Markets Authority are conducting investigations into these concerns.

Source: CNBC