Business Users’ Perspective on the European Commission’s Draft Merger Guidelines
CIO Platform Nederland, in collaboration with Brabers, has submitted a consultation response to the European Commission’s draft Merger Guidelines. We have done so to clearly bring forward the perspective of business users of digital technologies. For organisations that depend on cloud, software and digital infrastructure, it is crucial that merger control better takes into account dependencies, lock-in and limited switching possibilities.
In our response (enclosed), we express our support for the modernisation of the guidelines. The digital economy requires a broader view of competition than just price and market share. Aspects such as quality, freedom of choice, innovation, interoperability, security and resilience are at least as decisive for business users. It is positive that the Commission explicitly takes these factors into account.
At the same time, we emphasise that vendorlock-in and dependency should be more central in the assessment of mergers in digital markets. In practice, switching is often technically complex, costly and risky. This may enable suppliers, after a merger, tounilaterally change conditions, for example through priceincreases, revised licensingmodels or limitations in support.
In addition, we call for greater attention to interoperability and open standards as a prerequisite for effective competition. Without genuine exchangeability of systems and data, user choice often remains theoretical. Mergers should not further weaken this interoperability.
We also urge the Commission to be cautious in assuming bargaining power for large customers. Even large organisations often have limited freedom of choice when systems are deeply embedded in their operations.
Finally, we underline the importance of strategic autonomy and resilience of the European digital economy. Merger scan increase dependencies on a limited number of (non-European) providers and thereby create risks for innovation and continuity.
With this contribution, CIO Platform Nederland aims to support merger control that better reflects there alities of digital markets and safeguards the interests of European businesses and public organisations.
Do you have any questions or comments about this article? Feel free to contact Ronald Verbeek at ronald.verbeek@cio-platform.nl.
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