EU’s Vestager says no concerns yet over antitrust law on cloud computing

BRUSSELS, March 28 (Reuters) – Cloud computing, in which Amazon (AMZN.O) and Microsoft (MSFT.O) are the biggest players, followed by Alphabet (GOOGL.O) Google, has not yet presented any competition problems due to Europe’s Gaia- X initiative, EU antitrust chief Margrethe Vestager said Monday.

Cloud computing services have seen demand soar, driven in part by the COVID-19 pandemic.

They have become a major driver of growth among the major tech companies, with AWS generating 13% of Amazon’s revenue and 74% of its business revenue last year, while Microsoft’s Intelligent Cloud unit, of which Azure is a large part, generating 37%. of its total sales.

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The market power of the large companies has caused unrest among smaller rivals in recent years. German software vendor NextCloud, French OVHcloud (OVH.PA) and two other companies filed complaints about Microsoft’s cloud practices with Vestager. read more

“No, so far we have not been concerned,” Vestager told Reuters in an interview when asked if she was concerned about companies potentially abusing their dominance.

She said Gaia-X, a project to create secure and efficient cloud data that aims to reduce the EU bloc’s reliance on Silicon Valley giants, would boost competition.

“This isn’t something we’re into, but I actually see it as competitive if you have someone to show potential customers that there are more than two giants where you can place your business,” she said.

A sector study last year cited respondents concerned about unfair terms that some software companies imposed to access their cloud infrastructure, unfair licensing terms and bundling software products with cloud infrastructure services. read more

Microsoft has said it will make its software available to customers in all environments, including those of other cloud providers.

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Reporting by Foo Yun Chee; Editing by Nick Macfie

Our Standards: The Thomson Reuters Trust Principles.

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