Cloud Computing Providers’ Anti-Competitive Practices Should Be Curbed by EU Tech Rules: Study

Draft EU guidelines to curb the ability of Amazon, Apple, Alphabet unit Google, and Fb must also deal with suppliers of cloud computing companies for potential anti-competitive practices, a research mentioned on Tuesday. The report comes amid considerations that some EU lawmakers who’re reviewing the Digital Markets Act (DMA) proposed by EU antitrust chief Margrethe Vestager could also be lenient in the direction of cloud computing corporations.

Amazon’s Amazon Internet Providers was the main supplier within the second quarter, adopted by Microsoft Azure and Google Cloud, market analysis firm Statista discovered. Others embrace IBM Cloud, Alibaba Cloud, Salesforce, and Oracle.

Frederic Jenny, chairman of the Organisation for Financial Cooperation and Improvement’s Competitors Committee, put collectively the research, in his private capability, for commerce physique Cloud Infrastructure Providers Suppliers in Europe (CISPE).

The brand new EU guidelines must also cowl software program licensing, the report mentioned, with respondents citing unfair phrases imposed by a few of the large software program corporations to entry their cloud infrastructure.

“The DMA does say that cloud infrastructure can come throughout the ambit of the DMA however it’s not apparent that each one the suppliers are coated,” Jenny advised Reuters in an interview.

“For instance, it does not appear that Google Cloud qualifies below the DMA as a gatekeeper or IBM Cloud or Salesforce.”

Potential anti-competitive practices by some corporations may embrace unfair pricing methods or efforts to make customers’ transfer to a rival technically troublesome, he mentioned.

Jenny mentioned the research interviewed some 25 corporations that use cloud computing companies, a few of which cited points resembling unfair licence phrases that power prospects to pay once more to make use of software program they already personal once they transfer to a competitor.

Respondents have been additionally involved about suppliers bundling software program merchandise with their cloud infrastructure to make rival merchandise both much less enticing or dearer.

Google, Oracle and SAP declined to remark. Microsoft and Amazon didn’t instantly reply to requests for remark.

EU lawmakers must thrash out the draft DMA with EU nations earlier than it turns into regulation, presumably in 2023.

© Thomson Reuters 2021

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