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C titi i th Cl dC titi i th Cl dCompetition in the CloudCompetition in the Cloud

Professor Ian WaldenProfessor Ian WaldenI i f C d C i i LI i f C d C i i LInstitute of Computer and Communications LawInstitute of Computer and Communications Law

Centre for Commercial Law Studies, Queen Mary, University of Centre for Commercial Law Studies, Queen Mary, University of LondonLondonOf Counsel, Baker & McKenzieOf Counsel, Baker & McKenzie

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Introductory remarksIntroductory remarks

“cloud computing can boost Europe's competitiveness.....drastically reduce IT costs, help

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p y , pgovernments supply services at a lower cost to citizens and make computing much more energy efficient.”

Commission, 3 March 2011

Competition concerns

– End-user & supply chain

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icc Legal responses

– Within competition law

– Other legal regimes

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Cloud ComputingCloud Computing

Cl d ti id fl ibl l ti i d d t

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.e Cloud computing provides flexible, location-independent access 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

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icc Charging is commonly on an access basis, often in proportion to

the resources used.

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“X as a Service”“X as a Service”

SoftwareSoftware as a Serviceas a ServicePlatformPlatform as a Serviceas a Service

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.e InfrastructureInfrastructure as a Serviceas a Service

CommunicationsCommunications as as a Servicea Serviceandand so on...so on...

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icc and and so on...so on...

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Service CloudService Cloud

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Network CloudNetwork Cloud

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Physical CloudPhysical Cloud

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Competition challengesCompetition challenges

Anti-competitive agreements

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.e e.g. Apple iPhone apps agreements (Sept. 2010)

Abuse of dominant position– Market definition

From products to services

– TyingIBM i i i f l i & i i

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icc e.g. IBM investigation re: software emulations & transition

from legacy systems

– Network effects & lock-in e.g. Data portability & switching costs

Territoriality

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StandardisationStandardisation

Standards-making processF f l i f l b di

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.e – From formal to informal bodies 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

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– IBM (1984), Microsoft (2007), Intel/McAfee....

– European Interoperability Strategy & Framework (2010)

Intellectual property rights– On FRAND or royalty-free basis?

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Public procurementPublic procurement

Cloud servicesGoogle Inc & Onix Networking v US and Softchoice

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Google Inc & Onix Networking v US and Softchoice 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 irrevocably

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icc 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

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Data protectionData protection

Directive 95/46/ECProcessing ‘personal data’

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– Processing personal data

– Review & reform Commission Communication (Nov. 2010)

Data portability right– Individual right to withdraw his/her own data

‘as far as technically feasible’

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– Cloud terms & conditions Post- termination: (a) opportunity to retrieve & (b)

assurance as to deletion

– Google’s ‘Data Liberation Front’!

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Concluding remarksConcluding remarks

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www.cloudlegal.ccls.qmul.ac.ukwww.cloudlegal.ccls.qmul.ac.uk