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“Google’s digital advertising practices represent a systematic plundering of traditional media”

"Google's digital advertising practices represent a systematic plundering of traditional media"

The European association Open Internet Project (OIP) recognises in the proceedings initiated by the US Department of Justice against Google Alphabet, the questioning of systemic practices that the ADLC already had the opportunity to condemn in the amount to 220 million euros in 2021.

According to the American press, the antitrust proceedings initiated by the Department of Justice could result in a recommendation to dismantle Google and its head company Alphabet. The Open Internet Project has long been convinced that the concentration in Google’s hands of the dominant activities of publishing service platforms (such as e-mail or video), advertising services, publishing the web browser, search engine, mobile operating system or distributing mobile applications can only lead Google to abuse this confusion, to the detriment of free and undistorted competition.

This is illustrated by the large number of condemnations of Google. The OIP therefore believes that a dismantling of the Alphabet group and a splitting of Google’s activities into several legally, economically and technologically independent entities would be an effective and necessary solution, provided that such a dismantling is accompanied by the implementation of “algorithmic remedies”, i.e. remedies prohibiting the new entities resulting from the dismantling from using algorithms allowing them to combine their data on a large scale.

Besides Google’s competitors in digital advertising, the victims of these practices are the traditional media, which see the fair revenues to which they are entitled in the digital advertising market slip away in the opacity of billions of second transactions.

While the media and “pure players” represent 25% of the audience share on the Internet, they hardly represent 10 to 15% of the digital advertising market share, which means a loss of 800 million to 1 billion euros per year for the media that sustain culture and democracy in France.
« Getting back these phenomenal resources to ensure the financing of the media that keep the news alive is a decisive issue for the upcoming Estates General on the right to information called for by the President of the Republic and announced by the Minister of Culture. It is time to put an end to the systematic plundering of the digital advertising market by Google for its own benefit »
says Léonidas Kalogeropoulos
Delegate general

Contacts:

Léonidas Kalogeropoulos, Délégué Général : +33607315126 –  l.k@openinternetproject.eu

Anaïs Strauss, Chargée de mission :+33757503010 – anais.strauss@openinternetproject.eu

26, rue de l’Université • 75007 Paris
+33 (0)1 53 45 91 91

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 OIP welcomes the Statement of objections issued by the Bundeskartellamt against Google’s preferential treatment of its data processing terms  

OIP welcomes the Statement of objections issued by the Bundeskartellamt against Google’s preferential treatment of its data processing terms

L’OIP se félicite de l’annonce par le Bundeskartellamt, l’autorité de la concurrence allemande, de la mise en œuvre d’une procédure formelle à l’encontre de Google et de sa maison-mère Alphabet.

Agreeing with the analyses of our association and data protection authorities across the European Union, the Bundeskartellamt believes that the American group must change the way it collects and cross-references the personal data of Internet users through its various services, allowing it to gain an unfair competitive advantage over its competitors.

According to the Bundeskartellamt’s analysis, Google currently allows itself to combine data from its various services, for example, for the purpose of very detailed advertising user profiles or to train functions provided by services, including through the Google Play services integrated into many apps for Android devices.

However, the preliminary conclusions of the German competition authority show that Google does not offer European users sufficient choice to make an informed objection to this processing of their data across services. Google is using this consent defect to obtain data that its competitors cannot obtain, and thus ensure that their products are not competitive.

"In Europe, compliance with the protective rules of the GDPR is essential not only for the right to data protection of European citizens, but also to ensure a fair level of competition between all players. Players like Google must be prohibited from coming to Europe without accepting the rules scrupulously respected by European players, and Google must be prevented from benefiting from the continued and repeated violation of European law,"
says Leonidas Kalogeropoulos
Delegate general
The OIP is pleased that the Bundeskartellamt intends to use its enforcement powers under Section 19a of the German Competition Act to prohibit Google from continuing practices that are illegal under German and European law. At the European Union level, the Digital Markets Act (DMA) should also allow the Commission to prohibit such practices as soon as they are detected.
"OIP calls for the DMA to be implemented as quickly and effectively as possible. We must fight to ensure that illegal and abusive practices that impede competition and undermine consumer rights stop as soon as they occur, and this requires both protective measures and uncompromising enforcement of the DMA's dispositions,"
declares Quentin Adam
President

Contacts:

Léonidas Kalogeropoulos, Délégué Général : +33607315126 –  l.k@openinternetproject.eu

Anaïs Strauss, Chargée de mission :+33757503010 – anais.strauss@openinternetproject.eu

26, rue de l’Université • 75007 Paris
+33 (0)1 53 45 91 91

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Egress fees in the Cloud market: a powerful tool to lock users in

Egress fees in the Cloud market: a powerful tool to lock users in

A market study made by the Dutch Consumer and Market Authority (ACM) showed that it is especially complicated for users to switch from one Cloud service to another, or to combine Cloud services from different providers, because of the particularly high egress fees imposed by the market leaders. These excessive costs for consumers represent a significant obstacle to the emergence of a healthy and fair competitive environment, therefore to innovation in a constantly changing market.

Cloud services allow companies and organizations to use high-quality IT services (such as external storage capacity and computing power) without having to invest in expensive hardware and software. Cloud providers therefore play a key role in the digitization of businesses, where data processing, gathering, storage, and analysis is nowadays crucial.

For the users of these services, a certain number of costs associated with the processing and management of their data should be anticipated and must be expected. On the other hand, additional costs are often imposed by the dominant players, such as the “egress fees”, without any real technical and economic justification.

What are the egress fees?

Egress fees are the costs charged by a Cloud provider to a customer who wishes to extract his data to another provider in the market, in order to transfer it to another provider, to process it “on-premises” or to use several providers simultaneously (multicloud). These charges apply whenever there is a transfer of data outside the network of the original cloud provider, whether it is:    

– To Internet (for a complete transfer to another cloud provider)

– Between geographic areas (“regions”, including when data remains with the same provider) or within the same geographic area

– Between providers (in a multi-cloud logic)

Which consequences for users?

This means that customers are required to pay any egress fees charged by their former supplier, which can often be disproportionately expensive. 

The ACM [1] study shows that the two largest Cloud service providers (Microsoft Azure and Amazon Web Services) each have an estimated 35-40% of the total market. In this economic environment dominated by these two American giants, it is difficult for other market players to find their place and serenely develop.

Moreover, for users of cloud services, the lack of predictability of egress fees at a given time is an additional obstacle to the free flow of data.  Indeed, these costs remain very abstract for the customer, who cannot know at the time of contracting the volume of data that he will host with the chosen cloud provider and the frequency of their transmission. The amount of fees that will be charged for a change of provider or a multi-cloud application is therefore highly unpredictable and discourages any data migration. However, there is no technical or commercial justification for billing separately for data transfer rather than integrating the marginal costs of data transfer into the data storage itself.

This situation becomes even more problematic given that the excessive egress fees for Cloud servicesincrease the market imbalance. Indeed, thanks to this dissuasive system, the American giants can reinforce their dominant positions and keep their customers choices blocked: this is the “lock-in” effect.

Beyond this dimension of excessive costs linked to the issue of data transfer, technical difficulties may appear. They concern, for example, the data interoperability, or a normative gap between countries, etc.

The European cloud services sector is very dynamic, with many highly successful European cloud players having established themselves on the European digital market. However, the healthy competition on this market is strongly undermined by aggressive commercial practices of all American hyperscalers. In particular, egress fees are an unjustified and unfair practice, which is highly prejudicial to the competitive balance that is essential to allow European players who respect our values to continue to grow.

Unjustified egress fees

The following infographic illustrates the differences in egress fee prices charged by some of the key players in the Cloud services market[2].

The market leaders are the ones who charge the highest egress fees. Other French players, such as OVHcloud or Scaleway for example, do not charge for this type of service.

According to a study conducted by Cloudflare in 2021[1], the profit realized by AWS on egress fees is estimated at nearly 8000% for data leaving servers located in Europe or the United States. However, the study adds that the wholesale price of data transit services has dropped by an average of 93% over the last 10 years, while the egress fees charged by AWS have only dropped by 25%.

These egress fees are even less justifiable as the cost of data transport is marginal for the cloud provider, and not directly related to the volume of data exchanged.

In conclusion, the overpricing of egress fees can only be rationally explained in terms of a desire to artificially curb the free choice of a Cloud provider.
 

[1]https://www.acm.nl/en/publications/acm-amendments-data-act-necessary-promoting-competition-among-cloud-providers

[2] https://twitter.com/holori_cloud/status/1526188485144633347

[3] https://blog.cloudflare.com/aws-egregious-egress/

Paper Egress fees

Contacts:

Léonidas Kalogeropoulos, Délégué Général : +33607315126 –  l.k@openinternetproject.eu

Anaïs Strauss, Chargée de mission :+33757503010 – anais.strauss@openinternetproject.eu

26, rue de l’Université • 75007 Paris
+33 (0)1 53 45 91 91

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Actualités EN

Data Act: measures must apply to all cloud offers, without exception

Data Act: measures must apply to all cloud offers, without exception!

The Open Internet Project calls on European co-legislators not to introduce exceptions for cloud services

Data act

As discussions on the Data Act accelerate in the European Parliament, the European association Open Internet Project (OIP) wishes to warn against any measure that would aim to exempt certain categories of cloud offerings from the obligations of the Data Act.

Indeed, some published amendments propose to exempt all trial offers from the prohibitions on barriers to free choice of cloud provider and data reversibility. So, for example, cloud providers could accumulate and store all user data during a free or promotional trial period, but charge for its retrieval upon exit for the only purpose of dissuading users from signing a contract with a competing cloud provider. The OIP points out that the cloud market is unfortunately often characterized by trial offers over several months or even years, or offered credits worth several hundred thousand euros. Such offers accelerate the market capture and are traps to lock users in for the long term.

Indeed, early amendments propose to exempt trial offers from the prohibitions on the free choice of the cloud provider choice and the reversibility of data. Therefore, cloud providers could accumulate and store all user data during a free or promotional trial period, but charge for its retrieval upon exit, for the sole purpose of deterring users from signing a contract with a competing alternative cloud provider. The OIP reminds that the cloud market is unfortunately often characterized by trial offers over several months or even several years, or by offered credits worth several hundred thousand euros. Such offers accelerate the capture of the market and are traps to lock users in.

In this context, OIP recalls that egress fees represent a major obstacle to the emergence of healthy and fair competition and therefore to innovation in a growing market, as well as to the free flow of data in the European internal market. Indeed, it is particularly expensive for a user to switch from one cloud service to another, or to combine cloud services from different providers, due to artificially high exit fees systematically imposed by the market leaders. These excessive costs, without any economic or technical justification, can only be rationally explained in terms of a desire to artificially curb the freedom to choose one’s cloud provider.

« We absolutely do not understand the logic of wanting to exempt from the Data Act - a very important text for the future of our sector - the trial offers from the obligations of a future regulation that is so crucial for the development of a healthy competition on the cloud market. Europeans are excelling in the field of the cloud with the implementation of innovative and efficient services for European users. We cannot weaken a whole sector of excellence by adopting legislation that would favor aggressive and restrictive business practices! »
says Quentin Adam
CEO of Clever Cloud and President of the OIP
«The Open Internet Project is an association committed to the development of healthy and fair competition in the European digital market. We are extremely concerned by certain proposals envisaged in the Data Act, which would encourage an anti-competitive practice that we denounce, even though it is a text that should protect our European champions and not weaken them! We call for the removal of any amendment aiming at creating such exceptions in order to build a legislative framework that respects European values and offers European companies the opportunity to propose alternative and efficient cloud offers! »
says Léonidas Kalogeropoulos
General Delegate of the OIP

Contacts:

Léonidas Kalogeropoulos, Délégué Général : +33607315126 –  l.k@openinternetproject.eu

Anaïs Strauss, Chargée de mission :+33757503010 – anais.strauss@openinternetproject.eu

26, rue de l’Université • 75007 Paris
+33 (0)1 53 45 91 91

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Actualités EN

The OIP association is very pleased to welcome École Hexagone as a new member!

The OIP is very pleased to welcome Hexagone School as a new member!

The OIP welcomes for the first time a member in the domain of higher education and training!

The Open Internet Project (OIP) association is very pleased to welcome École Hexagone as a new member! This is the first time that a school forming our future engineers, computer scientists and developers joins the OIP, in order to participate actively in the work and actions of the association, aiming to denounce and correct the abuses of dominant position, while extending its prerogatives to the issues related to education.

Indeed, many French schools that train students for digital professions work closely with American tech giants, “locking” their students into American software ecosystems, who later in their professional careers often become natural ambassadors for these solutions in the companies that hire them. At the end of their training, many graduates leave France or the European Union to be hired by the American tech giants, who often offer very high salaries that they compensate by their business practices based on dominant positions, which their French competitors cannot match.

The Hexagone School, Great School of French Digital Sovereignty, created in 2020, currently has two campuses in France, in Clermont-Ferrand and Versailles, and will have nearly 200 students at the beginning of the school year. The academic programs of the 4 tracks; Bachelor’s degree in Computer Science, Master’s degrees in Information Systems Architecture, Artificial Intelligence and Cyberdefense, are built around and with French publishers and manufacturers; Stormshield, 3DS Outscale, Scaleway, HarfangLab, Olvid, etc.

"I am very pleased that OIP is expanding its list of members. Thanks to the Hexagon School's membership, we will be able to highlight all the fundamental issues that arise from the organization of digital education in France, which is often too closely linked to American software and companies. We need to train our future developers in French and European tools, and sensitize them about issues of technological and digital sovereignty. For example, when it comes to cyber-defense and artificial intelligence, it is fundamental to realize that dependence on American companies and their software causes serious problems in many very sensitive areas. I am therefore very happy to attack this new angle, together with our new member!”
says Quentin Adam
CEO of Clever Cloud and President of the OIP
«I am honored by the trust placed in us by the Open Internet Project, which recognizes our vision and our work. We are forming the next technicians and engineers in computer science for French companies and industries. Our role is to educate them on sovereign technologies in order to get out of the straitjacket imposed by the American actors in particular. We are delighted to join the OIP, because we want to work as a team, with the various actors of the digital sovereignty. We believe that it is as a team that we will succeed in leading and winning the various battles »
specifies Sébastien Dhérines
President of the École Hexagone

All the members of the OIP welcome the Hexagon School!

Contacts:

Léonidas Kalogeropoulos, Délégué Général : +33607315126 –  l.k@openinternetproject.eu

Anaïs Strauss, Chargée de mission :+33757503010 – anais.strauss@openinternetproject.eu

26, rue de l’Université • 75007 Paris
+33 (0)1 53 45 91 91

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Actualités EN

OIP continues to expand: Welcome to Jamespot!

OIP continues to expand: Welcome to Jamespot!

The Open Internet Project (OIP) is pleased to announce the membership of Jamespot ! 

Jamespot is a French startup that develops a complete internal communication and collaboration platform, expanding the list of OIP members that develop and host their digital solutions in Europe.

The European ecosystem of efficient and sovereign digital solutions continues to grow, which is an excellent signal not only for consumers, who benefit of innovative solutions, but also for public authorities, who are increasingly concerned with the issue of digital and technological sovereignty. Like many other OIP members, Jamespot faces a challenging competitive environment with abuse of dominant positions, which the association is committed to fight.

Jamespot is a provider of internal communication and collaboration solutions in the cloud. The Jamespot solution is an intranet, an internal social network or a digital workplace, according to the organizations that deploy it. It answers to all the needs and business challenges of its customers thanks to the modularity of its platform and its app store. In 2021, Jamespot has grouped its applications to compose 4 complete product suites: Open Agora – the internal social network, Fast Intranet – the communication intranet, Diapazone – meeting facilitation and WeDoc – online sovereign office automation. Jamespot supports the daily life of more than 400 organizations and 400,000 users around the world.

"There are more and more of us in the IOP, fighting for a competitive and fair digital environment. This is a key battle, and I am delighted that Jamespot has joined our movement and shares our values and ambitions! It is imperative that we join our forces, in order to raise the voice of the French tech ecosystem! I am amazed by the performance of the solutions developed in France; it is fundamental to promote them in order to become more and more independent from American solutions, developed by tech giants that do not respect our values or our laws!"
underlines Quentin Adam
CEO of Clever Cloud and President of the OIP
"Joining OIP for Jamespot is to consolidate this increasingly connected ecosystem of European solutions that are growing with ambition, in complete independence and with respect for the values that made Europe. The Internet is one of the most beautiful human achievements in the technological field. We must protect the values that make it up, including the values of openness and justice,"
say Alain Garnier,
President of Jamespot

All the members of the OIP welcome Jamespot!

Contacts:

Léonidas Kalogeropoulos, Délégué Général : +33607315126 –  l.k@openinternetproject.eu

Anaïs Strauss, Chargée de mission :+33757503010 – anais.strauss@openinternetproject.eu

26, rue de l’Université • 75007 Paris
+33 (0)1 53 45 91 91

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Actualités EN

Welcome to OVHcloud!

Welcome to OVHcloud!

The European association Open Internet Project (OIP) is very pleased to announce the membership of OVHcloud!

With this new member, OIP looks forward to continue to work on competitive issues related to the cloud marker. Indeed, OVHcloud, Scaleway and Clever Cloud three emblematic and major players of the French cloud, committed to digital sovereignty and respect for market ruleswish to bring their expertise and share their visions of a competitive and fair European cloud market, and thus support the actions of OIP which aim to fight against any abuse of dominant position on tech markets.

OVHcloud is a global player and the European leader in the Cloud, operating more than 400,000 servers in 33 datacenters located on 4 different continents. Based on a unique integrated model, the group manages its entire value chain to deploy a more environmentally friendly cloud. This unique approach allows the company to innovate continuously to independently cover all the uses of its 1.6 million customers around the world. OVHcloudoffers the latest solutions that combine performance, price predictability and complete sovereignty over their data to support their growth in complete freedom.

« I am very pleased that OVHcloud has joined the OIP! We had the objective to expand the OIP in the coming months, and the two recent memberships of Scaleway and OVHcloud are emblematic of our ambitions and objectives: to become an even more powerful association in the service of healthy and fair competition in the European digital market! As CEO of Clever Cloud, it has never seemed so important and crucial to me to combine the strengths of the "fair play" players, in order to truly influence the future decisions that will have to be taken by our Governments in order to favor innovative, competitive European players, always at the service of their customers! »
says Quentin Adam
CEO de Clever Cloud and Président of OIP
« OVHcloud has always placed the collective at the heart of its approach. Thanks to a strong ecosystem of partners, we have the ambition to promote an innovative, sustainable and efficient technology that respects our European values. By joining the Open Internet Project, we are even more committed to promoting and defending in Paris and Brussels the conditions for a dynamic and fair cloud market for all players in our industry and for the benefit of our users' freedom of choice »
adds Michel Paulin
CEO of OVHcloud

All OIP members welcome OVHcloud and look forward to working together to pursue their common goals!

Contacts:

Léonidas Kalogeropoulos, Délégué Général : +33607315126 –  l.k@openinternetproject.eu

Anaïs Strauss, Chargée de mission :+33757503010 – anais.strauss@openinternetproject.eu

26, rue de l’Université • 75007 Paris
+33 (0)1 53 45 91 91

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Actualités EN

The OIP welcomes the CJEU’s decision to uphold Google’s €4.125 billion fine for abuse of dominant position on Android

The OIP welcomes the CJEU's decision to uphold Google's €4.125 billion fine for abuse of dominant position on Android

« But fines must not become provisional taxes on abuse of dominance! »

The European association Open Internet Project (OIP) welcomes the decision of the Court of Justice of the European Union, which confirmed on 14 September 2022 that Google had indeed abused its dominant position, as the European Commission had ruled in the Android case back in 2018, following various complaints filed with the Commission, including OIP’s.

The Commission rightly considered that Google was imposing illegal restrictions on Android device manufacturers in order to promote the use of its own search engine. Google was thus using its Android operating system to maintain the dominant position of its search engine. Moreover, in its decision, the CJEU notices that Google does not contest that the pre-installation of a search engine on an Android phone is ” likely to improve the results of the search services concerned”, which confirms that Google abused its dominant position to deny its competitors the possibility to improve their service, in detriment of consumers’ interest.

« I am satisfied with this decision, but I want to remind you that this decision comes 7 years after the beginning of the procedure, a procedure that is not finished, because both parties can still appeal. It has been 7 years since Google abused its dominant position on Android, trying to block alternatives, such as Qwant, one of the founding members of our association, from offering their services to European users. The only way to stop Google's anti-competitive practices from the beginning would have been to pronounce interim measures. But the current wording of the legislation governing the use of these services has not allowed the Commission to do so. For the past 7 years, we have been lobbying for the standards of interim measures to be readjusted so that they can be used by the Commission, as we can see there is no other way to dissuade Google from increasing its anticompetitive behavior! »
says Léonidas Kalogeropoulos
General Delegate of the OIP
« It is time for a change in the standard of interim measures! We see in the consultation on Regulation 1/2003 on the EU antitrust rules a real opportunity to change the wording, so that the word "irreparable" damage is replaced by "immediate" damage. Imposing a fine, whether it is a record or not, on a tech giant, and we have been observing this for more than 13 years now, is unfortunately useless because the fines become a provisioned tax on the abuse of a dominant position! For the year 2021 Google (Alphabet) alone had a $76 billion net profit: Alphabet could therefore have paid 18 times this €4.125 billion fine, while remaining productive. But requiring this same giant to cease practices judged to be anti-competitive within a short period of time would finally tip the balance in favor of healthy and balanced competition, which is so necessary for virtuous European players.»
says Quentin Adam
CEO of Clever Cloud and President of the OIP

Contacts:

Léonidas Kalogeropoulos, Délégué Général : +33607315126 –  l.k@openinternetproject.eu

Anaïs Strauss, Chargée de mission :+33757503010 – anais.strauss@openinternetproject.eu

26, rue de l’Université • 75007 Paris
+33 (0)1 53 45 91 91

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Actualités EN

OIP welcomes the adoption of the DMA, a crucial step towards the regulation of Tech giants !

OIP welcomes the adoption of the DMA, a crucial step towards the regulation of Tech giants !

Open Internet Project (OIP), a European association of organizations and European digital industrialists, welcomes the agreement reached by the trialogue on Thursday 24 March 2022 on the Digital Markets Act (DMA) regulation.

OIP welcomes the agreement reached by the trilogue on Thursday March 24, 2022 on the DMA regulation, and notes with satisfaction that the legislation relating to digital markets in Europe will finally enter a new era.

« The DMA agreement is a significant step forward, which we welcome. Thanks to this new regulation, the European rules governing GAFAM will be much stricter, in particular with the recognition of the notion of gatekeeper, and will allow European alternative solutions – often the very first victims of anti-competitive practices – to develop under more favorable conditions ! »
emphasizes Leonidas Kalogeropoulos
OIP General Delegate

While the European digital market is dominated by a few monopolistic players, the DMA is the promise of more dynamic, open and healthy competition, which should allow innovative digital companies to develop under fairer conditions.

The DMA specifically targets gatekeepers, i.e. “gatekeepers”. As a reminder, these are digital companies in a dominant position and which control in particular the access of their users to the services of third-party companies. Recognizing their key position is key to being able to regulate them as such.

Gatekeepers indeed act as market regulators, they often impose barriers to entry, and ignore our existing European laws. OIP is particularly pleased that the entry into force of the DMA can make it possible to make, in the event of abuse, the sanctions against these gatekeepers more restrictive and dissuasive than before.

However, OIP stresses that there are still points of vigilance, in particular on the speed of application of the text as well as the use of precautionary measures. The final wording (article 22) does not seem to have taken into account the amendments of Parliament, aimed at making the standards for the application of precautionary measures better suited to their effective use. OIP recalls in this respect that the success of the DMA will necessarily depend on the ability of the European authorities to enforce it within short deadlines and, if necessary, with dissuasive sanctions.

Contacts:

Léonidas Kalogeropoulos, General Delegate : +33607315126 –  l.k@openinternetproject.eu

Anaïs Strauss, Adviser :+33757503010 – anais.strauss@openinternetproject.eu

26, rue de l’Université • 75007 Paris
+33 (0)1 53 45 91 91