Competition i th Cl d                      C    titi in the Cloud                                     Professor Ian Walden...
edu  cl@ccls.e                    Cloud Computing                  Cloud                  Cl d computing provides fl ibl l...
Service Cloud          edu  cl@ccls.e                                                                          Network Clo...
Standardisation          edu                   Standards-making process  cl@ccls.e                        – F            ...
edu                     Data protection                   Directive 95/46/EC                    – Processing ‘personal da...
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Cloud computing - competition law issues

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Slides for talk by Prof Ian Walden, Cloud Legal Project http://bit.ly/cloudlegal at Annual Conference on European Antitrust Law 2011 - The future of European competition law
in hi-tech industries, Brussels 3-4 Mar 2011 - http://www.era.int/upload/dokumente/11873.pdf

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Cloud computing - competition law issues

  1. 1. Competition i th Cl d C titi in the Cloud Professor Ian Walden Institute of Computer and Communications Law I i fC dC i i L Centre for Commercial Law Studies, Queen Mary, University of London Of Counsel, Baker & McKenzie Introductory remarks edu “cloud computing can boost Europes competitiveness.....drastically reduce IT costs, help p y , p cl@ccls.e governments supply services at a lower cost to citizens and make computing much more energy efficient.” Commission, 3 March 2011  Competition concerns – End-user & supply chainicc  Legal responses – Within competition law – Other legal regimes 1
  2. 2. edu cl@ccls.e Cloud Computing Cloud Cl d computing provides fl ibl l ti id flexible, location-independent access ti i d d t to computing resources that are quickly and transparently allocated or released in response to demand. Services (especially infrastructure) are abstracted and typically virtualised, generally being allocated from a pool shared as a fungible resource with other customers. Charging is commonly on an access basis, often in proportion to basisicc the resources used. “X as a Service” Software as a Service edu Platform as a Service cl@ccls.e Infrastructure as a Service Communications as a Service as a Service and so on... and so on... and so on...icc 2
  3. 3. Service Cloud edu cl@ccls.e Network Cloudicc Physical Cloud Competition challenges edu  Anti-competitive agreements cl@ccls.e  e.g. Apple iPhone apps agreements (Sept. 2010)  Abuse of dominant position – Market definition  From products to services – Tyingicc  e.g. IBM i investigation re: software emulations & transition i i f l i ii from legacy systems – Network effects & lock-in  e.g. Data portability & switching costs  Territoriality 3
  4. 4. Standardisation edu  Standards-making process cl@ccls.e – F From f formal to i f l informal bodies l b di  e.g. Cloud Security Alliance, Trusted Cloud Initiative...... – EU approach  White Paper: Modernising ICT Standardisation in the EU (2009)  EC Guidelines on ‘horizontal agreements’ (2011)  Interoperability p yicc – IBM (1984), Microsoft (2007), Intel/McAfee.... – European Interoperability Strategy & Framework (2010)  Intellectual property rights – On FRAND or royalty-free basis? Public procurement edu  Cloud services  Google Inc & Onix Networking v US and Softchoice cl@ccls.e Corp. (2011)  Re: Microsoft’s BPOS: “the DOI’s product selection of choice”  Regulated procurement – UK Govt., Note 3/11 (31 January 2011)  Open standards: i.e. “intellectual property made irrevocablyicc available on a royalty free basis”  Italian Constitutional Court, Decision Nº 122, 22.3.2010  But compliant with WTO public procurement rules?  State aid concerns – TFEU, art. 107 4
  5. 5. edu Data protection  Directive 95/46/EC – Processing ‘personal data personal data’ cl@ccls.e – Review & reform  Commission Communication (Nov. 2010)  Data portability right – Individual right to withdraw his/her own data  ‘as far as technically feasible’ yicc – Cloud terms & conditions  Post- termination: (a) opportunity to retrieve & (b) assurance as to deletion – Google’s ‘Data Liberation Front’! edu cl@ccls.e Concluding remarksicc www.cloudlegal.ccls.qmul.ac.uk 5

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