European cloud firms calls for clearer ‘ex ante rule to stop abusive software licensing

The past week, an issue was raised tagged a “Critical loophole” as the European’s Flagship plans to take as a matter of Urgency. “Ante – Competitive Behavior by Gatekeeping digital giant, because the European Clouding Computing Companies has laid certain complains about this.

The Competition Commission and EVP Margrethe were said to have received an open letter in the previous week, As 41 European Cloud Enterprise called for an urgent verification and clarification to be issued to draft digital market Act (DMA) to ensure productivity and enterprise software and purchased clearly in scope. The accession of the letter was from Startups to larger Enterprise Companies like Netalia, Aruba, Leaseweb and Elogic.

According to the Open letter, the group of companies coming together, are currently facing an urgent situation, Monopoly softwares providers are once again using their dominant position to lock in customers, by forcing them to use the cloud infrastructure they provide. And by doing this, it simply means that other smaller Cloud Infrastructures cannot compete, stating that it is an abuse of software Licences. Also, innovative European Cloud Companies, are being closed out of their market.

This is why it is important that the Digital market Act sets up a clear remedy to eradicate this unjust practice by software gatekeepers in order to close these critical loopholes. The Commission has revealed that its Digital market Act proposal to apply “Ex Ante Rules to the digital gatekeepers, also known as Large Intermediate Platform with relevant market powers back in Dec 2020 Stating that the Legislation would put a certain listed behavioural obligation on key Platforms to supplement Traditional Competition Enforcement by actively eluding abusive behaviour such as Anti Interoperability or self-referencing.

The European’s Executive ensures the Digital market Act would practice fairness in the marketplace In building a regime of proactive antitrust intervention against certain Tech giant market powers. The commission also enacted a prescriptive list of “Do’s and Don’t” tagged to some named examples (Browser, Voice assistant, Operating System) Risk creating coverage blind spot. It is assumed that if the list of Behaviors or examples is not good enough to access and keep up with problematic gatekeepers.

Lack of Specificity could be taken advantage of by deep-pocketed Tech Giant to serve legal Challenges in a bid to escape or show “Ex Ante Obligation. Nevertheless, Enterprise Software Licensing notes that the Digital market Act does list “Cloud Computing Service” as potentially failing in scope as the main Platform service is worth it. Being that the company in question has been assigned as a gatekeeper. The European Cloud Companies, in the letter written to the commission, are troubled that the language and examples are not explicit enough to ensure legal clarity for their sector.

The local member Organization knew Cloud Infrastructures Service Provider in Europe (CIPSE) is also a signatory. It was said that a Spokesman for Cloud Infrastructures Service Provider had stated that other signatories want the Digital market Act closed to put it beyond doubt that the “Ex Ante Rules clearly applies to Enterprise gatekeepers especially those selling productive database service or ERP. The letter also revealed a study of the Cloud Infrastructures Service Provider commissioned into Cloud Infrastructures and Software Licensing organized by Professor Frédéric Jenny, and he highlighted quite a number of Certain anti-Competitive behaviour such as lock – In’s, Inflated cost and audits. He said that billing for potentials rather than actual use is such an unfair tactic being used by these legacy providers to eliminate smaller Cloud Service players.

Cloud Infrastructures Service Provider in Europe ensures that while European Cloud Infrastructures Service. has been increasing their revenue in recent years, their market share has dropped drastically ranging from 27% to <16% In 2012. Professor Frédéric Jenny concluded that the Digital market Act should guarantee that abusive practices by the very large current software providers are stopped. When MEP’S Concluded to their negotiating position the Digital market Act has had a first pass through the European parliament and at that time, Amendment which Cloud Infrastructures Service Provider in Europe said had been aimed to withhold potential loopholes around enterprises and productivity Software Giants Which didn’t manage to gain any support.

The Negotiation between the parliament council are Commission by the European co – legislative process has now been moved. Cloud Infrastructures Service Provider in Europe is hoping that there would be an opportunity for the Legislation, to put it beyond doubt that the bloc’s incoming “Ex Ante regime will apply Gatekeeping enterprise software Giants and major companies likely to fall under this administration are Microsoft, Oracle and SAP. It is been considered that one of the reasons the European lawmakers are holding back to more explicitly Target the sector in choice of example reflected into the Digital market Act. Because Microsoft and Oracle are US Companies, While ERP Giant SAP hails from Germany. However, the commission was reached out to for its response to the Cloud Companies’ Open Letter but there are yet to respond.