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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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9 Cloud computing and the new EU data privacy regulation

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9 Cloud computing and the new EU data privacy regulation

The new data privacy regulations are heavily intertwined with innovations driven by cloud computing. Cloud computing affects business in the way information is structured, organized, stored and accessed worldwide. This chapter examines the key provisions of the newly enacted General Data Protection Regulation424 (“GDPR”) dated 27 April 2016 and their impact on European and U.S. business. The GDPR will come into effect on 25 May 2018. Compliance with these new provisions requires restructuring efforts, new notification and reporting lines as well as an active engagement with the data subject. With sanctioning fines at a record high, compliance has become more and more important.

9.1 The legislative process of the GDPR

On 25 January 2012, the EU Commission proposed a comprehensive reform of the EU’s 1995 data protection rules set forth in the Directive 95/46/EC425. The aim of the reform is to adjust the existing legal framework for technological progress, globalization and consolidate the legal landscape to one set of rules for the EU internal market. One of the main objectives of the EU is to reinforce consumer confidence in online services. On 12 March 2014, the European Parliament voted in very strong favor of the proposed new Directive426 and Regulation427. The GDPR targets data processing operations in the context of civil use. The new Directive stipulates general data protection principles and rules for police and judicial. The GDPR has been adopted on 27 April...

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