Law Institute Prof. Dr. Rolf H. Weber Hong Kong University, July 5, 2013 Regulatory Framework for Cloud Computing

Law Institute Regulatory Framework for Cloud Computing - Prof. Dr. Rolf H. Weber page 2 July 5, 2013

Law Institute page 3 Regulatory Framework for Cloud Computing - Prof. Dr. Rolf H. Weber Foundation of cloud computing Foundation of cloud computing Specific characteristics Different services Levels of regulatory concerns July 5, 2013

Law Institute Regulatory Framework for Cloud Computing - Prof. Dr. Rolf H. Weber page 4 July 5, 2013

Law Institute page 5 Regulatory Framework for Cloud Computing - Prof. Dr. Rolf H. Weber Available regulatory instruments Competition law Sector-specific law ex post Whole economy Functional approach: free competition Competition authorities ex ante Specific market Regulatory intervention Specific supervisory authority July 5, 2013

Law Institute page 6 Regulatory Framework for Cloud Computing - Prof. Dr. Rolf H. Weber Sector- specific regulation Vertical integration Network neutrality Electronic commerce Interoperability and data portability July 5, 2013 Information security

Law Institute page 7 Electronic communications service Interoperability and data portability Cloud computing’s special features Limited importance of access framework Regulatory Framework for Cloud Computing - Prof. Dr. Rolf H. WeberJuly 5, 2013

Law Institute page 8 Meaning of net neutrality Net neutrality Practical importance of neutrality issue for cloud computing Possibilities of neutrality framework Risk of fragmentation without standardization Regulatory Framework for Cloud Computing - Prof. Dr. Rolf H. WeberJuly 5, 2013

Law Institute page 9 Framework also addressing vertical integration Electronic commerce Notion of information society services Jurisdictional rules Secondary liability Regulatory Framework for Cloud Computing - Prof. Dr. Rolf H. WeberJuly 5, 2013 Host provider Service/content provider

Law Institute page 10 Network and Information Security Directive (Proposal of February 2013) Information security Safety precautions and cooperation Technical and organizational measures Communication of incidents Regulatory Framework for Cloud Computing - Prof. Dr. Rolf H. WeberJuly 5, 2013

Law Institute Regulatory Framework for Cloud Computing - Prof. Dr. Rolf H. Weber page 11 July 5, 2013

Law Institute page 12 Market definition Competition law Interoperability and data portability Vertical integration Regulatory Framework for Cloud Computing - Prof. Dr. Rolf H. WeberJuly 5, 2013 Restrictive agreements Abusive market behavior

Law Institute page 13 Upstream market Market definition Downstream market Wholesale call termination Geographical market Regulatory Framework for Cloud Computing - Prof. Dr. Rolf H. WeberJuly 5, 2013

Law Institute page 14 Dominant position of cloud computing provider Interoperability and data portability Customer lock-in Anticompetitive foreclosure Regulatory Framework for Cloud Computing - Prof. Dr. Rolf H. WeberJuly 5, 2013

Law Institute page 15 Vertical restraints Restrictive agreements Block exemption Black list of block exemption General principles Regulatory Framework for Cloud Computing - Prof. Dr. Rolf H. WeberJuly 5, 2013

Law Institute page 16 Margin squeeze / Predatory pricing Abusive market behavior Access rights (refusal to deal) Discrimination Refusal to supply Regulatory Framework for Cloud Computing - Prof. Dr. Rolf H. WeberJuly 5, 2013

Law Institute Regulatory Framework for Cloud Computing - Prof. Dr. Rolf H. Weber page 16 July 5, 2013

Law Institute page 17 Regulatory Framework for Cloud Computing - Prof. Dr. Rolf H. Weber Outlook Increasing need for sector-specific regulation Timely delivery issues Avoidance of abusive market behavior July 5, 2013