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“Local, more specialized vendors are unable to compete “on the merits” as the key to success is not a good product but the ability to distort competition and block market access.” Nextcloud claims that such anti-competitive practices on the part of big tech companies have captured 66% of the European market share. On the other hand, local providers have lost out from 26% to 16% due to the difficulty in onboarding new customers. Nextcloud went on to add that: This in turn limits consumer choice and acts as an obstacle to fair competition, also known as “gatekeeping”. The complaint alleges that the move compels consumers to register for the service and surrender their data to Microsoft. This is the second time Microsoft is coming under the scanner for such practices, the first being in 1998 when it bundled internet explorer with its Windows operating system. Many tech companies were angered by this move alleging it was another attempt to create a monopoly. ![]() Microsoft’s announcement comes less than two months after the release of Windows 11. The complaint follows Microsoft’s decision to discontinue OneDrive for all operating systems it released prior to Windows 10. The complaint has been filed by Nextcloud, along with nearly 30 tech companies supporting it. In the complaint, the Berlin-based software maker said Microsoft is bundling its OneDrive cloud, Teams and other services with Windows 10 and 11, which could lure users to the Microsoft 365 cloud without considering alternatives.A coalition of EU-based tech companies has filed a formal complaint against Microsoft alleging the firm’s software bundling practices to be anti-competitive. You might also like: Big Tech Firms’ EU Woes Far From Over In December, PYMNTS reported Microsoft could face a legal battle after self-hosted productivity platform Nextcloud, backed by a coalition of a 30 European companies, filed a complaint with EU and German antitrust authorities over Microsoft’s bundling of OneDrive with Windows. Still, the power of the giant tech firms has still sparked worries among smaller companies. “…I basically see it as pro-competitive when you have someone to show potential customers that there are more than two giants where you can place your business,” Vestager said. Gaia-X, she said, seeks to reduce the EU’s dependence on Silicon Valley giants, and boost competition. It promises transparency, controllability, portability and interoperability across data and services. The project, developed in Europe, is a global software framework that implements control and governance standards that can be applied to a cloud technology network. Vestager said the giant tech firms can thank Gaia-X. ![]() Azure, Microsoft’s Intelligent Cloud unit, collected 37% of its overall sales. “No, so far we’ve had no concerns,” Margrethe Vestager told the news outlet when asked if she was troubled about potential abuse by their dominance.ĭriven by COVID-19, cloud computing services have seen demand skyrocket and have been a major driver of growth at big tech firms.Īmazon Web Services (AWS), which calls itself the world’s most comprehensive and broadly adopted cloud platform, generated 13% of Amazon’s revenue in 2021 and 74% of its operating income. Two of the biggest providers of cloud computing networks don’t raise competition concerns, the European Union’s Commissioner for Competition told Reuters Monday (March 28). Amazon and Microsoft can breathe a sigh of relief - for now.
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