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Regulation of Cloud Services under US and EU Antitrust, Competition and Privacy Laws


Sára Gabriella Hoffman

This book examines how cloud-based services challenge the current application of antitrust and privacy laws in the EU and the US. The author looks at the elements of data centers, the way information is organized, and how antitrust, competition and privacy laws in the US and the EU regulate cloud-based services and their market practices. She discusses how platform interoperability can be a driver of incremental innovation and the consequences of not promoting radical innovation. She evaluates applications of predictive analysis based on big data as well as deriving privacy-invasive conduct. She looks at the way antitrust and privacy laws approach consumer protection and how lawmakers can reach more balanced outcomes by understanding the technical background of cloud-based services.

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4 Cloud security risks


4 Cloud security risks

The demand for cloud computing services has significantly increased. A survey by Mimecast.com125 stipulates that the sectors with the highest cloud adaptation are the technology sector with 53 %, financial services with 41 % and legal services with 37 %. The data transferred to the cloud in these sectors is confidential. The relevant information may affect IPRs, influence the reaction on stock markets and information falling under the attorney-client-privilege.

European and U.S. customers have a different understanding of their relationship with personal data. European customers are very data-conscious, aware and keen to know what happens with their personal data. The “click and agree” policies are being challenged by critical questions and the data processor and data controller are held accountable by consumer pressure as well as the law. This concept of privacy and fragmented data handling must be mirrored when dealing with the EU internal market. Looking at the German Data Protection Act (Bundesdatenschutzgesetz), there is a specific legal basis for data storage, processing, deleting, third party inquiries, transfers, damages in case of unlawful use, and so on.

4.1 Identified security concerns (B2B)

Therefore, security concerns are the largest group of perceived cloud computing risks. The IBM Whitepaper126 describing the core cloud computing inhibitors also illustrates this in the following chart:←67 | 68→

Fig. 7: Inhibiting factors to cloud computing

The IBM Whitepaper identified security, the lack of a clear value proposition and the...

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