On June 4, 2025, The French Competition Authority (“FCA”) launched a public consultation on the topic of self-preferencing in the cloud computing sector. This follows the recent enactment of Law No. 2024-449 on the security and regulation of the digital space (“SREN Law”). This consultation reflects growing scrutiny of vertically integrated cloud providers that may favor their own services and software at the expense of competitors.
Background
On May 22, 2024, France enacted the SREN Law, a comprehensive legislative package designed to enhance competition in the cloud computing sector and bolster the security of digital services for users. A key element of the law is Title III, which targets unfair commercial practices within the cloud ecosystem. At the heart of these provisions is Article 26, now codified as Article L. 442-12 of the French Commercial Code, which explicitly addresses self-preferencing practices by vertically integrated cloud service providers.
The law defines self-preferencing as: “The act, by a cloud service provider who also supplies software, of providing software to a customer through the services of a third-party cloud service provider underpricing and functional conditions that differ significantly from those under which the provider supplies the same software through its own cloud service, when such differences in pricing and functionality are not justified.”[1]
By prohibiting self-preferencing, the law aims to curb anticompetitive conduct that undermines fair access and interoperability in the cloud sector.
Under this new framework, the FCA is empowered to investigate, address, and sanction instances of self-preferencing—either on its own initiative or following a referral from the Minister for Digital Affairs or any interested party.
Public consultation
The FCA is required to submit a report to Parliament and the Government by November 22, 2025, outlining its enforcement efforts against self-preferencing and recommending any procedural or legislative adjustments to strengthen the regime. In this context, the FCA has launched a public consultation, seeking input from industry stakeholders, legal experts, and interested parties on self-preferencing practices,[2] as well as on possible procedural or legislative measures to prevent them.[3]
This initiative follows the FCA’s Opinion No. 23-A-08 of June 29, 2023,[4] which identified both commercial and technical barriers in the cloud market – particularly the risks of customer lock-in and restrictions curtailing the growth of competing providers. Stakeholders are now encouraged to share relevant observations or practical experiences concerning self-preferencing, and to propose reforms that could effectively address these concerns.
Takeaways
This consultation reflects the increasing convergence between competition enforcement and digital regulation, in line with broader EU-level initiatives such as the Digital Markets Act.[5] France’s proactive stance underscores the importance of addressing vertical concerns and the strategic use of software to consolidate market power in the cloud infrastructure sector.
[1] Article 26 of the SREN Law.
[2] The public consultation framed the questions as: “Have you observed or are you currently observing any self-preferencing practices as defined in Article L.442-12 of the French Commercial Code? If so, please provide details in your response and, where applicable, share any relevant supporting documents.”
[3] The specific question in this regard is: “Would you like to bring to our attention any potential procedural or legislative improvements in the cloud computing sector, and more specifically to combat self-preferencing?”
[5] Regulation (EU) 2022/1925 of the European Parliament and of the Council of September 14, 2022, on contestable and fair markets in the digital sector and amending Directives (EU) 2019/1937 and (EU) 2020/1828 (Digital Markets Act)