For Margrethe Vestager, the cloud market does not raise concerns about the lack of competition

EU Competition Commissioner Margrethe Vestager says the cloud computing market does not currently raise any competition concerns. To justify its position, it cites the existence of Gaia-X – a project aimed at developing sovereign clouds by sector – which will have the ability to sufficiently stimulate competition and will constitute a reliable alternative.

Compete against AWS and Azure
I basically consider it pro-competitive when you can show potential clients that there are more than two giants you can put your business into‘, I explained to Reuters during an interview. These two giants are Amazon Web Services (AWS) and Microsoft Azure. According to a study by Synergy Research Group in September, AWS, Azure and Google Cloud alone capture 69% of the European market. They are also investing heavily there: more than 14 billion euros in investment over the past four quarters. The goal: to upgrade and expand the super data center network.

European players are far behind. Deutsche Telekom tops the list with a 2% market share, followed by companies such as OVHcloud and Orange. The latter is also concerned about the place occupied by US companies. Several antitrust complaints have been filed with the European Commission by OVHcloud and the Coalition for a Level Play Field against Microsoft. They accuse it of favoring its own services by limiting consumer choice in the market for cloud computing services.

Gaia-X, a really reliable alternative?
About the weight of the Gaia-X, skepticism is allowed. In fact, this structure is progressing slowly despite strong ambitions. During the 4th France Hub plenary session, members evaluated the progress of work for each of the sectors. Automotive, with Catena-X, as well as agriculture and agribusiness are some of the most advanced projects, reports LeMagIT. As for education or energy, it is slower.

In addition, large cloud companies are not absent from the project. Among the more than 300 members of Gaia-X, we find Salesforce, Palantir, Oracle, Palo Alto, Microsoft, Amazon or Google. On the other hand, they are not entitled to sit on the board of directors of the association. That doesn’t stop them from participating in meetings and adding their own year, Arnaud de Birmingham, president and founder of Scaleway, told us, justifying his decision not to renew his membership in Gaia-X.

denounced”Complexity created by dominant actors in order to ensure that the initiative is as slow as possible and to protect their own interestsBut time in this matter is precious:The speed of Gaia-X is not the speed of the cloud market, which in two years will be more than 300 billion dollars“.

Legal risks are reduced
The presence of US companies has also raised legal concerns. Indeed, by invalidating the Privacy Shield, the Court of Justice of the European Union has questioned the legality of the flow of personal data to the United States. In implementation of this historic decision, the use of Google Analytics has been declared by several authorities, including the National Commission on Computing and Liberties (Cnil).

While the new agreement seemed impossible because it required a fundamental change in US legislation, the European Commission announced that it found “agreement in principleIn a new frame. Its contents have not yet been published.

In the same week, Parliament and EU member states reached an agreement on the Digital Markets Act (DMA). With the aim of restoring fair competition, this provision establishes strict obligations for gatekeepers (a player able to block access to the market or ecosystem of other companies). Cloud computing services are involved, which can modify the cards by leaving more space for European players on the condition that they take over.

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