Distortion of competition in digital markets: the practice of offering ‘cloud credits’
26.10.2021
Question for written answer E-004844/2021
to the Commission
Rule 138
Christophe Grudler (Renew), Stéphanie Yon-Courtin (Renew), Gilles Boyer (Renew), Marie-Pierre Vedrenne (Renew), Dominique Riquet (Renew), Laurence Farreng (Renew), Paul Tang (S&D), Pascal Durand (Renew), Ivan Štefanec (PPE), Jordi Cañas (Renew), Fabienne Keller (Renew), Chrysoula Zacharopoulou (Renew), Irène Tolleret (Renew), Klemen Grošelj (Renew), Viktor Uspaskich (NI), Sylvie Brunet (Renew), Olivier Chastel (Renew), Stéphane Séjourné (Renew)
In a report on competition in digital markets published in October 2020, the US House Judiciary Committee’s Subcommittee on Antitrust, Commercial and Administrative Law identified a number of problematic practices commonly used by the dominant cloud service providers.
These practices undermine consumer choice and competition, especially as cloud portability is but a fantasy given the technical constraints and egress fees charged.
The practice of offering free incentives or 'cloud credits’ is of particular concern and bears a resemblance to dumping: widely available in the European digital ecosystem, these incentives are neither regulated, nor limited, nor subject to taxation and transparency requirements.
- 1.Is the Commission aware of these practices, and cloud credits in particular? Will it conduct studies to better understand how they affect competition, consumer choice and the free flow of data in the single market?
- 2.What measures does it intend to take, where necessary, to prohibit such practices if they are confirmed to be a form of dumping?