
European Cloud Firms Demand ex ante Rules
Cloud computing businesses in Europe have raised concerns about a "critical flaw" in the EU's centerpiece strategy to combat anti-competitive practices by gatekeeping digital monsters.
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CIO Applications Europe | Tuesday, February 16, 2021

The companies in Europe cloud computing companies in Europe have expressed alarm about a major vulnerability in the EU's main approach for combating anti-competitive activities
FREMONT CA: Cloud computing businesses in Europe have raised concerns about a "critical flaw" in the EU's centerpiece strategy to combat anti-competitive practices by gatekeeping digital monsters. There are 41 European cloud enterprises who wrote an open letter to the competition commissioner and EVP Margrethe Vestager, requesting an urgent clarification to the draught Digital Markets Act (DMA) to guarantee that productivity and corporate software are explicitly brought into scope. The letter's signatories range in size from small businesses to larger corporations. Aruba, elogic, Leaseweb, and netalia are among the joined companies.
Monopolistic software firms are again using their monopolistic position to lock in consumers by requiring them to use their cloud infrastructure. Because of this misuse of software licenses, smaller cloud infrastructure providers cannot compete. This includes innovative European cloud startups locked out of the market. Today, it is critical that the DMA contains specific remedies to stop software gatekeepers' unfair activities. To fix this significant loophole, just a few explanations are required.
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The Commission unveiled its DMA proposal to apply ex-ante rules to so-called digital "gatekeepers" — aka, large, intermediating platforms with significant market power — claiming that the legislation would impose specific, listed behavioral obligations on major platforms to supplement traditional competition enforcement by proactively prohibiting abusive behaviors like self-preferencing and anti-interoperability.
The EU's executive confirmed that the DMA would protect market fairness by establishing a proactive antitrust intervention system against market power held by tech giants. A lack of detail could also be used by deep-pocketed tech behemoths to initiate legal challenges to avoid or delay ex ante obligations.
According to another signatory, local member group CISPE, Cloud Infrastructure Services Providers in Europe — the European cloud companies writing the letter to the Commission are concerned that the language and examples are not specific enough to assure legal clarity for their sector.
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