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

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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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7 Data privacy standardization cartel

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7 Data privacy standardization cartel

Since the services of the cloud are globally accessible via the World Wide Web, the cloud operates globally. This poses the problem of uniform data protection levels. The scope of data protection is stipulated in the privacy and data protection laws. The legal provisions are governed by the principle of territoriality.265 This poses a problem for the regulation for cloud service operators. The cloud user demands data protection regardless to the country they access their data from or to the place the data is processed and stored. Also, virtualization is responsible for an additional layer of data privacy concern in the case of an attack user vs. user trespassing on the virtual server boundaries within the data center. It would ease compliance costs if service providers could use a joint forum to analyze technical failures. This would elevate data privacy standards and mitigate IT forensics expenses because resources and knowledge would be shared.

7.1 International data privacy standards

On the level of international public ordering, setting up international data privacy standards is theoretically possible. Reaching an understanding between the U.S. and the EU Member States was not possible so far due to different understandings of data privacy standards.266 The two systems of law have two different bottom lines regarding the commitment and the balance of interest of open information flows versus privacy.267 A very detailed legal framework in the Member States of the EU and the EU itself protects...

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