A new European regulator will keep an eye on cloud licensing issues
- CISPE launches a new European Cloud Competition Observatory to monitor competition
- ECCO’s first mission is to focus on Microsoft’s CISPE settlement
- Broadcom/VMware is also in the spotlight
Non-profit industry association Cloud Infrastructure Services Providers in Europe (CISPE) has launched a new body to monitor unfair software licensing practices in the cloud market.
The newly formed European Cloud Competition Observatory (ECCO) was established as part of CISPE’s settlement with Microsoft following a complaint filed with the European Commission over the company’s anti-competitive business practices.
In one press releaseCISPE confirmed that ECCO “will focus on Microsoft’s compliance with the July 2024 obligations while monitoring licensing practices that impact both cloud providers and customers.”
CISPE launches new cloud competition regulator
The consortium also noted that ECCO will operate under a separate governance structure, with client organizations such as France’s Cigref and Belgium’s Beltug acting as observers to reflect clients’ perspectives.
Although the new regulator will first focus on Microsoft, it also has other ‘software giants’ in its sights, including Broadcom’s VMware, which is also accused of anti-competitive business practices in Europe.
Francisco Mingorance, Secretary General of CISPE, commented: “We appreciate Vice President Vestager’s role in establishing ECCO as part of our settlement with Microsoft. ECCO will serve as a watchdog for any software vendors using unfair practices to disrupt the European cloud market, with Broadcom currently under our watch.”
Although ECCO does not intend to file complaints itself, the findings it could reveal in its reports will increase pressure on companies to address unfair practices before they risk facing a full investigation.
Danielle Jacobs, CEO of Beltug, added: “ECCO’s work is essential to help achieve a fair licensing environment for cloud software in Europe.”
Regarding the initial focus on Microsoft, ECCO will release its first report following a technical summit in December with CISPE and Microsoft members; further follow-up actions are planned for February and April.