A new European regulator will keep an eye on cloud licensing issues

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CISPE launches new European Cloud Competition Observatory to monitor competition
ECCO’s first mission is to focus on Microsoft’s CISPE settlement
Broadcom/VMware is also under the spotlight

Non-profit trade 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 regarding the company’s anticompetitive business practices.

In a press release, CISPE confirmed that ECCO “will focus on Microsoft’s adherence to the July 2024 commitments, while monitoring licensing practices impacting both cloud providers and customers.”

CISPE launches new cloud competition regulator

The consortium also noted that ECCO will be operate under a separate governance structure, with customer organizations like France’s Cigref and Belgium’s Beltug acting as observers to reflect customers’ 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 being accused of anticompetitive business practices in Europe.

Francisco Mingorance, CISPE Secretary General, commented: “We appreciate Vice President Vestager’s role in establishing ECCO as part of our settlement with Microsoft. ECCO will serve as a watchdog over any software vendors using unfair practices to disrupt the European cloud market, with Broadcom under our current scrutiny.”

Although ECCO isn’t set to file complaints itself, the findings it could reveal in its reports will increase the pressure on companies to address unfair practices before they risk facing a full-blown investigation.

Beltug CEO Danielle Jacobs added: “ECCO’s work is essential to help deliver a fair cloud software licensing environment in Europe.”

With regard to its initial focus on Microsoft, ECCO is set to release its first report after a December technical summit with CISPE and Microsoft members – further follow-ups are planned for February and April.

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