Cloud Computing Suppliers’ Anti-Aggressive Practices Ought to Be Curbed by EU Tech Guidelines: Examine

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Draft EU guidelines to curb the ability of Amazon, Apple, Alphabet unit Google, and Fb also needs to deal with suppliers of cloud computing companies for doable anti-competitive practices, a examine stated 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 the direction of cloud computing corporations.

Amazon’s Amazon Net 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 Growth’s Competitors Committee, put collectively the examine, in his private capability, for commerce physique Cloud Infrastructure Providers Suppliers in Europe (CISPE).

The brand new EU guidelines also needs to cowl software program licensing, the report stated, with respondents citing unfair phrases imposed by a number of the huge software program corporations to entry their cloud infrastructure.

“The DMA does say that cloud infrastructure can come inside the ambit of the DMA however it isn’t apparent that every one the suppliers are coated,” Jenny instructed 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 might embrace unfair pricing methods or efforts to make customers’ transfer to a rival technically tough, he stated.

Jenny stated the examine interviewed some 25 corporations that use cloud computing companies, a few of which cited points resembling unfair licence phrases that pressure clients 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 engaging or costlier.

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

EU lawmakers should thrash out the draft DMA with EU nations earlier than it turns into legislation, probably in 2023.

© Thomson Reuters 2021


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