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 Facebook must also sort out suppliers of cloud computing providers for potential anti-competitive practices, a examine mentioned on Tuesday. The report comes amid issues that some EU lawmakers who’re reviewing the Digital Markets Act (DMA) proposed by EU antitrust chief Margrethe Vestager could also be lenient in direction of cloud computing corporations.

Amazon’s Amazon Web Services 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 Economic Cooperation and Development’s Competition Committee, put collectively the examine, in his private capability, for commerce physique Cloud Infrastructure Services Providers in Europe (CISPE).

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

“The DMA does say that cloud infrastructure can come within the ambit of the DMA but it is not obvious that all the suppliers are covered,” Jenny informed Reuters in an interview.

“For example, it doesn’t seem that Google Cloud qualifies under the DMA as a gatekeeper or IBM Cloud or Salesforce.”

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

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

Respondents had 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 need to thrash out the draft DMA with EU nations earlier than it turns into regulation, presumably in 2023.

© Thomson Reuters 2021