Microsoft’s proposed measures to comply with EU antitrust regulations have been deemed inadequate by Nextcloud, a German software provider. According to Nextcloud, the U.S. software giant needs to do more to adequately address the allegations of unfair competition brought by competitors of Microsoft. Regulators are currently evaluating whether or not they will open a formal investigation into these claims.
French cloud computing services provider OVHcloud awaits a more specific proposal from Microsoft, according to an individual with direct knowledge of the situation. The complainant is awaiting further details.
Resolving the complaints with the companies could help Microsoft stave off a possible EU antitrust investigation that could lead to a fine as much as 10% of its global turnover.
In 2021, Nextcloud formally complained to the European Commission about Microsoft’s alleged abuse of market dominance by pre-installing its OneDrive cloud storage service with Windows 10 and 11. The company believes this action prevents competition in the cloud storage market by limiting users’ options.
Microsoft, which has been hit with more than 1.6 billion euros ($1.7 billion) in EU antitrust fines in the previous decade, reached out a year ago but did not talk about the bundling issues, Nextcloud Chief Executive Frank Karlitschek said on Wednesday.
“I would be interested in more talks but it would have to be a serious conversation,” he told Reuters.
The complaints by OVHcloud, Italian cloud service provider Aruba and a Danish association of cloud service providers focused on Microsoft’s cloud practices and licensing deals.