Management/Managers, Racism? Or just egotistical? HR ISSUE?

I have HR experience, and this manager is just being a jerk. Considering he speaks his native language, but doesn't think it's appropriate or makes people uncomfortable that speak theirs, I'd say it was time for someone to have a talk with him about discrimination. If the company has no policy, which I'd doubt they do, about speaking foreign languages at work this guy needs to keep his opinion to himself.