17 December 2020

 Draft Digital Markets Act is a significant step towards a fair and competitive European Cloud

More work is needed to ensure European businesses and consumers have fair access to the cloud of their choice

Brussels – The proposed Digital Markets Act, published yesterday, is significant step towards a fair and competitive European Cloud. However, the long-lived anti-competitive conduct of some global software gatekeepers in cloud-adjacent markets, including abusive software licensing practices, continue to harm European businesses and undermine fair competition in Europe’s cloud sector.  As the Act is debated and adopted it is crucial that these global software gatekeepers and their unfair behaviours are adequately tackled to guarantee businesses and consumers have the freedom to use the cloud offerings of their choice.

“The Draft DMA is a great step forward for a fair and competitive cloud market in Europe and is welcomed by our members. However, as the draft is reviewed, European policymakers must ensure that its terms adequately address misbehaving legacy software providers and ensure they stop exploiting their dominant position,” said Alban Schmutz, Chair of CISPE and VP Strategic Development & Public Affairs of OVHcloud.  “A failure to address the distorting impact of dominance in cloud-proximate ecosystems could seriously compromise the aspirations of the Digital Markets Act and damage Europe’s bid to create an open and competitive digital ecosystem including initiatives such as GAIA-X,” Schmutz continued.

“We must realise that this is not just about ensuring a fair and competitive market. Actions that limit the choice of business customers in Europe, who are increasingly moving their digital tools and services to the cloud, have a real and direct impact on growth and innovation,” said Stefano Cecconi, CEO of Aruba and Vice President of CISPE. “The behaviour of entrenched providers may have massive impact on European customers’ right to choose the cloud solution that best fits their needs.”

“CISPE members and their customers[1] will be pleased that several of their concerns raised in public consultations have been heeded by the Commission.” Francisco Mingorance, Secretary General, CISPE “Tackling unfair licensing practices by some global software gatekeepers will significantly enhance customer choice in cloud infrastructure and underpin a more vibrant, competitive and healthy cloud ecosystem in Europe.”

 

About CISPE

CISPE is a non-profit association with a goal of developing greater understanding and promoting the use of cloud infrastructure services in Europe. Members range from SMEs to large multinationals, based in 14 EU Member States and with customers across the EU. CISPE member companies have cumulatively invested billions of euros in Europe’s digital infrastructure, which enables both digital and environmental transformation.

 

For more information, please contact: Simona Romeo, sr@europa-insights.com, +32 492 2498 68

[1] https://www.politico.eu/wp-content/uploads/2020/12/14/DMA-Letter-from-IT-users-to-EC.pdf