Icecat’s on the EU’s call for open source evidence: “Embrace Open Source First Policy”

The EU has launched a call for evidence regarding open source software (OSS) in the light of the EU’s sovereignty. We submitted today Icecat’s position in response to this “Call for Evidence on the EU Open-Source Sector”. As a listed SME company (ISIN: NL0012291266) that operates at the intersection of open product data, global e-commerce integrations, and deep-tech investments, our perspective is rooted in the practical application of OSS as a driver of European digital sovereignty and wealth.

Section 1: Strengths, Weaknesses, and Barriers

Strengths: The EU possesses a robust ecosystem of specialized OSS providers. From e-commerce platforms like PrestaShop to PIM (Product Information Management) solutions like Akeneo and Pimcore, Europe has a leading role in the domain of e-commerce in creating tools that prioritize modularity and data privacy. Open Icecat – our open source product data environment – is the undisputed single global source for the e-commerce industry, especially in the tech & consumer electronics vertical. And Icecat runs proven business models demonstrating commercial sustainability.

Weaknesses: A primary weakness is the “Scale-up Gap.” While Europe creates world-class OSS, the transition to global market leadership is often hampered by a lack of late-stage venture capital compared to the US. Furthermore, the EU’s internal market remains fragmented by varying national interpretations of digital procurement. This also includes the tendency to rely on non-EU providers, even for government solutions. Finally, research programs are insufficiently focused on fostering OSS initiatives. They are more input- than output-oriented (hours driven rather than result driven). A consequence of all these weaknesses is the limited ability of EU businesses to develop world-class cloud solutions on top of their respective OSSs. Furthermore, it also leads to domain-specific AI deficits. While general-purpose open AI models exist (LLaMA, Mistral), Europe lacks specialized open models for critical verticals like eCommerce, healthcare, and manufacturing.

Barriers:
1. The “Free” Fallacy: Public and private adopters often perceive “open source” as “zero cost,” leading to underfunded maintenance and security. Which removes the stimulus for related cloud initiatives.

2. Contribution Inertia: While we utilize foundational tools like MySQL, Kubernetes, and Linux, there are few fiscal incentives for companies to contribute back to “upstream” projects. This creates a “Tragedy of the Commons” where a few maintainers carry the burden for thousands of corporate users.

3. No legal requirements for manufacturers (especially in the consumer market) to donate all their public product information as “open data”. This makes it harder for the EU e-commerce market to develop its local champions in a range of verticals (e.g., Fashion, Automotive) were manufacturers tend to be over-protective at the cost of the consumer, but also their own online brand exposure.

4. Compute infrastructure gap: Training competitive AI models requires massive GPU resources. US hyperscalers control most capacity, creating dependencies even for EU open-source projects.

Section 2: Added Value of Open Source

Icecat views open source as a mechanism for Risk Mitigation, Global Branding and Innovation Acceleration.

• Cost & No Lock-in: By using open-source e-commerce integrations (e.g., WooCommerce, Magento), businesses avoid the “tax” of proprietary platform fees and the technical debt of closed-off APIs.
• Security & Transparency: In our investment in Orange Quantum Systems, the Orange Juice open-source operating system is vital. In the quantum era, security through obscurity is a liability. Open code allows for the rigorous, community-wide auditing required for mission-critical infrastructure. And helps to develop a community that is familiar with the respective quantum company’s solutions and stimulates – in this case – also other EU quantum initiatives with best-in-class quantum chip testing software.
• Data Sovereignty: Our Open Icecat initiative provides a global standardized, open data repository that ensures retailers are not dependent on a single proprietary data monopolist, fostering a more competitive and open European retail market. Furthermore, participation in Open Icecat, automatically reduces the manufacturer’s legal ability to effective harass e-commerce startups with cease & desist orders (typical for the German market).

Open Icecat case study

Icecat provides a concrete, large-scale example of open-source principles creating measurable value:

Factor	Concrete Value from Icecat
Cost Reduction	34,000 retailers avoid duplicating product content creation efforts. Industry estimates suggest savings of EUR 50-200 per product datasheet.
Lock-in Prevention	Open taxonomy prevents vendor lock-in. Retailers can switch platforms while retaining access to standardized product data.
Security & Trust	Transparent data provenance. All product information is validated by brands or Icecat QA team—fully auditable.
Innovation	MCP server enables AI agent integration. External developers can build on Icecat data without permission barriers.
Interoperability	Standardized across 77 locales. Seamless cross-border eCommerce within the EU single market.
Regulatory Compliance	Built-in support for EU regulations: Digital Product Passport, GPSR safety labels, packaging waste data.

Section 3: Recommended EU Actions

To strengthen the sector, the EU should:

1. Incentivize “Upstream” Contributions: Implement R&D tax credits for companies that can prove their developers are contributing to the security and maintenance of critical OSS libraries.

2. Sovereign Tech Fund Expansion: Expand funding for the “stewards” of the ecosystem to ensure compliance with the Cyber Resilience Act (CRA) without stifling small-scale innovation.

3. Open Source First Policy: Standardize procurement across the Union to favor OSS (and open source content), requiring a “Comply or Explain” justification for any proprietary software purchase by public entities.

Section 4: Priority Technology Areas

• Quantum Computing Stacks: We must prioritize open-source layers (like Orange Juice) to ensure the European quantum industry is not built on foreign proprietary foundations.
• AI and LLMs: To meet the requirements of the EU AI Act, Europe needs “open-weight” models that can be hosted locally, ensuring data remains within the jurisdiction of the user. Not int the last place for the EU’s thriving E-commerce sector.
• Enterprise Middleware: Strengthening open-source PIM and ERP integrations is essential for the digital transformation of European SMEs.

Section 5: Sectors for Competitiveness & Resilience

• Retail & E-commerce: Open-source data and integrations reduce the power of “Gatekeeper” platforms, allowing European merchants to thrive, also internationally.
• Quantum & High-Performance Computing (HPC): Open source is the only way to ensure the long-term cyber resilience of our most sensitive future computing assets.
• Public Administration: Moving to open-source stacks for citizen services eliminates long-term dependency on non-EU vendors and improves public trust through transparency.

Icecat remains itself committed to the growth of the EU open-source sector, especially regarding ecommerce data and related solutions. We are available for further consultation or to provide detailed case studies on our open-source investment and distribution models.