Microsoft accused by the EU of unfair practices

A European trade group has lodged a complaint with the European Commission against Microsoft (NASDAQ: MSFT), alleging that the tech giant uses anti-competitive practices that “irreparably damage the European cloud ecosystem”.

The complaint from the Cloud Infrastructure Services Providers in Europe (CISPE) trade group relates to Microsoft’s new contractual terms implemented on October 1, 2022, and certain other practices. It should be noted that the e-commerce giant Amazon (AMZN) is also a member of CISPE.

Francisco Mingorance, Secretary General of CISPE, said: “Leveraging its dominance in productivity software, Microsoft is restricting choice and inflating costs as European customers seek to move to the cloud, distorting Europe’s digital economy.

CISPE says Microsoft is abusing its dominant position in productivity software to push more European customers to its Azure cloud platform, to the great disadvantage of its European competitors. Two CISPE members, French cloud provider OVHcloud and Italian Aruba, had previously filed a separate complaint against Microsoft over competition concerns.

Is Microsoft Buy, Sell, or Hold Right Now?

Microsoft earns a consensus Strong Buy rating backed by 24 Buys and three Holds. The average MSFT stock price target of $293.46 implies an upside potential of 28.2%.

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