German software firm Nextcloud said Microsoft Corp.’s (MSFT.O) initial offer to answer competitor EU antitrust allegations is insufficient; The U.S. software giant must do more as authorities contemplate opening a formal inquiry.
A person with direct knowledge said French cloud computing services provider and complaint OVHcloud (OVH.PA) is likewise waiting for a more precise proposal from Microsoft.
Microsoft might avoid an EU antitrust inquiry that could punish with 10% of its worldwide revenue by resolving the allegations with the firms.
In 2021, Nextcloud complained to the European Commission that Microsoft exploits its dominance by bundling OneDrive with Windows 10 and 11.
On Wednesday, Nextcloud CEO Frank Karlitschek claimed Microsoft, which has been fined over 1.6 billion euros ($1.7 billion) in EU antitrust fines in the past decade, contacted out a year ago but did not discuss bundling.
“I would want additional conversations, but they would have to be serious,” he told Reuters.
OVHcloud, Aruba, and a Danish cloud service provider group complained about Microsoft’s licensing and cloud policies.
Microsoft says it resolved European cloud providers’ license concerns in October last year.
“We are grateful for the productive conversations that led us there and appreciate the feedback we have received since,” a Microsoft spokesperson said.
Aruba and Danish Cloud Community rejected the comment.
CISPE, a trade organization that complained to the Commission over Microsoft’s cloud computing practices last year, claimed Microsoft contacted out last week to negotiate adjustments.
Amazon.com Inc. is a Cispe member (AMZN.O).
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