New European Cloud Regulator Aims to Tackle Unfair Licensing Practices

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.

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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