A PYMNTS Company

New European Cloud Regulator Aims to Tackle Unfair Licensing Practices

By  |  November 20, 2024

The Cloud Infrastructure Services Providers in Europe (CISPE) has introduced a new regulatory body to oversee software licensing practices in the European cloud market. The European Cloud Competition Observatory (ECCO) is designed to monitor and address concerns regarding unfair practices, particularly focusing on major software vendors like Microsoft.

The formation of ECCO follows a settlement between CISPE and Microsoft in response to the trade association’s antitrust complaint to the European Commission. According to a statement from CISPE, the observatory’s primary objective will be to ensure that Microsoft adheres to commitments made in July 2024, which aim to rectify anticompetitive practices. The group will also monitor broader licensing trends that impact both cloud providers and customers.

Read more: Apple Faces £3 Billion Lawsuit in UK Over iCloud Monopoly Allegations

ECCO will operate with an independent governance structure, and its oversight will be inclusive of customer perspectives, with organizations like France’s Cigref and Belgium’s Beltug joining as observers. These groups will help ensure that the interests of customers are adequately represented in the observatory’s monitoring efforts.

While the immediate focus of ECCO is on Microsoft, the body has broader ambitions. CISPE’s statement highlighted that it intends to extend its scrutiny to other “software giants,” including Broadcom’s VMware, which is currently under investigation for similar concerns in the European market.

Francisco Mingorance, Secretary General of CISPE, expressed appreciation for European Commission Vice President Margrethe Vestager’s role in facilitating the creation of ECCO as part of the settlement with Microsoft. Mingorance emphasized that ECCO will act as a critical watchdog over companies that might disrupt the European cloud ecosystem with unfair practices, adding that Broadcom’s practices are also under close observation.

Source: Tech Radar

Zuckerberg Pushes for Settlement Ahead of Antitrust Trial Zuckerberg Pushes for Settlement Ahead of Antitrust Trial

Zuckerberg Pushes for Settlement Ahead of Antitrust Trial

By  |  April 2, 2025

Meta Platforms CEO Mark Zuckerberg is actively lobbying U.S. President Donald Trump and White House officials in an effort to reach a settlement that would prevent the company from facing an upcoming antitrust trial, according to the Wall Street Journal. The trial, scheduled for April 14, could have significant consequences for Meta, including the potential forced divestiture of its acquisitions, WhatsApp and Instagram.

Per the Wall Street Journal, Meta representatives have met with Trump and his senior advisers in recent weeks to discuss the Federal Trade Commission (FTC) lawsuit, which accuses the company of engaging in anticompetitive practices. Zuckerberg himself visited the White House on Wednesday, marking his third visit during Trump’s presidency. However, the Wall Street Journal notes that some White House aides have grown frustrated with Meta’s lobbying approach, viewing it as overly aggressive.

Meta spokesperson Andy Stone commented on the company’s engagement with policymakers, stating, “We regularly meet with policymakers to discuss issues impacting competitiveness, national security, and economic growth.” Meanwhile, White House Press Secretary Karoline Leavitt declined to provide a comment, and an FTC representative did not immediately respond to inquiries.

The FTC’s lawsuit argues that Facebook, now Meta, has maintained its dominance in the social networking space through a long-term strategy of eliminating competitive threats. According to the complaint, the company has engaged in anticompetitive conduct to sustain its monopoly power. While the FTC is an independent agency, Trump has sought to increase executive oversight over such entities, requiring them to submit significant regulations for White House review.

Related: FTC Targets Meta’s Market Power, Calls Zuckerberg to Testify

A person familiar with Trump’s thinking told the Wall Street Journal that the president has not yet made a decision on whether the administration will seek a settlement with Meta. Former FTC Chairman Jon Leibowitz, who served under both the Bush and Obama administrations, commented on the unusual nature of a company approaching the White House regarding an antitrust case. “It is unusual for companies involved in big antitrust lawsuits to go to the White House, but it has happened before,” Leibowitz said. However, he added that he has never seen a White House attempt to influence the FTC’s decision-making process, emphasizing the agency’s independence in such matters.

Zuckerberg’s efforts to engage with Trump follow a history of mixed relations between the two. According to the Wall Street Journal, Meta contributed $1 million to Trump’s inaugural fund and Zuckerberg made visits to Mar-a-Lago during the presidential transition. Additionally, in January, Meta settled a lawsuit Trump had filed against the company over its suspension of his social media accounts following the January 6, 2021, attack on the U.S. Capitol. The settlement resulted in a $25 million payment, with $22 million allocated to Trump’s presidential library fund.

As the April 14 trial approaches, it remains to be seen whether Meta’s lobbying efforts will yield a favorable resolution.

Source: The Wall Street Journal