Brussels, 27th October, 2025. The third report form the European Cloud Competition Observatory (ECCO), published today, highlights progress from Microsoft but worsening issues with Broadcom. It also raises concerns regarding SAP’s licensing terms that appear to lock customers into its own cloud and exclude solutions from rival European cloud infrastructure vendors.
Created at the suggestion of then Vice President Vestager, the ECCO provides a regular overview of the licensing practices of large software companies. As customers move to the cloud it is essential that they have free and informed choice of cloud service providers, and are able to avoid lock-in. ECCO includes members of CISPE with Cigref and Beltug, representing cloud customers in Europe, acting as observers.
This report gives Microsoft a ‘Green’ status. Reports from CISPE indicate that the agreement reached with Microsoft in July 2025 has led to progress towards licensing terms that provide European cloud service providers with a more level playing field that allows fair competition with Microsoft’s Azure cloud platform. This is the second successive report showing improvement in Microsoft’s rating from ECCO.
Broadcom, by contrast, continues to tighten the screws on Europe’s cloud infrastructure sector. A lack of action from EU competition authorities to check the worsening anti-competitive behaviours of Broadcom has led CISPE to challenge the European Commission’s initial approval of the acquisition of VMware by Broadcom. Whilst this case is ongoing, this ECCO report outlines the continuing and intensifying unfair software licensing perpetrated by Broadcom.
Finally, this ECCO report highlights early concern over two more large software companies that may be leveraging their dominance in software sectors to unfairly lock in customers and prevent competition from rival European cloud providers. SAP is already under scrutiny from the authorities, and this ECCO report outlines further concerns from cloud service providers. Citrix has also figured on the radar of several customers and vendors and is potentially following a similar route to Broadcom in unilateral and dramatic changes to licensing terms.
Francisco Mingorance, secretary general of CISPE, commented:
“The work of ECCO has never been more important. Although progress with Microsoft shows that open and honest negotiation can lead to results, an increasing number of large software providers seem set on inflicting unfair licencing terms that effectively lock in customers and lock out European cloud service providers. These anti-competitive behaviours must be challenged at every turn.”
The full ECCO report is available here.
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All ECCO reports are available on cispe.cloud/ecco. For further information please contact:
Ben Maynard
CISPE Director of Communications
+44 (0)7968 537982