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

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

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Page 1: Law Institute Prof. Dr. Rolf H. Weber Hong Kong University, July 5, 2013 Regulatory Framework for Cloud Computing

Law Institute

Prof. Dr. Rolf H. Weber

Hong Kong University, July 5, 2013

Regulatory Framework for

Cloud Computing

Page 2: 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 2July 5, 2013

Page 3: Law Institute Prof. Dr. Rolf H. Weber Hong Kong University, July 5, 2013 Regulatory Framework for Cloud Computing

Law Institute

page 3Regulatory Framework for Cloud Computing - Prof. Dr. Rolf H. Weber

Foundationof cloud

computing

Foundationof cloud

computing

Specific characteristics

Different services

Levels of regulatory concerns

July 5, 2013

Page 4: 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 4July 5, 2013

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

Law Institute

page 5Regulatory 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

Page 6: Law Institute Prof. Dr. Rolf H. Weber Hong Kong University, July 5, 2013 Regulatory Framework for Cloud Computing

Law Institute

page 6Regulatory 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

Page 7: Law Institute Prof. Dr. Rolf H. Weber Hong Kong University, July 5, 2013 Regulatory Framework for Cloud Computing

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Electronic communications service

Interoperability and data portabilityInteroperability 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

Page 8: Law Institute Prof. Dr. Rolf H. Weber Hong Kong University, July 5, 2013 Regulatory Framework for Cloud Computing

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Meaning of net neutrality

Net neutralityNet 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

Page 9: Law Institute Prof. Dr. Rolf H. Weber Hong Kong University, July 5, 2013 Regulatory Framework for Cloud Computing

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Framework also addressing vertical integration

Electronic commerceElectronic 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

Page 10: Law Institute Prof. Dr. Rolf H. Weber Hong Kong University, July 5, 2013 Regulatory Framework for Cloud Computing

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page 10

Network and Information Security Directive (Proposal of February 2013)

Information securityInformation security

Safety precautions and cooperation

Technical and organizational measures

Communication of incidents

Regulatory Framework for Cloud Computing - Prof. Dr. Rolf H. WeberJuly 5, 2013

Page 11: 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 11July 5, 2013

Page 12: Law Institute Prof. Dr. Rolf H. Weber Hong Kong University, July 5, 2013 Regulatory Framework for Cloud Computing

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Market definition

Competition lawCompetition law

Interoperability and data portability

Vertical integration

Regulatory Framework for Cloud Computing - Prof. Dr. Rolf H. WeberJuly 5, 2013

• Restrictive agreements

• Abusive market behavior

Page 13: Law Institute Prof. Dr. Rolf H. Weber Hong Kong University, July 5, 2013 Regulatory Framework for Cloud Computing

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Upstream market

Market definitionMarket definition

Downstream market

Wholesale call termination

Geographical market

Regulatory Framework for Cloud Computing - Prof. Dr. Rolf H. WeberJuly 5, 2013

Page 14: Law Institute Prof. Dr. Rolf H. Weber Hong Kong University, July 5, 2013 Regulatory Framework for Cloud Computing

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Dominant position of cloud computing provider

Interoperability and data portabilityInteroperability and data portability

Customer lock-in

Anticompetitive foreclosure

Regulatory Framework for Cloud Computing - Prof. Dr. Rolf H. WeberJuly 5, 2013

Page 15: Law Institute Prof. Dr. Rolf H. Weber Hong Kong University, July 5, 2013 Regulatory Framework for Cloud Computing

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Vertical restraints

Restrictive agreementsRestrictive agreements

Block exemption

Black list of block exemption

General principles

Regulatory Framework for Cloud Computing - Prof. Dr. Rolf H. WeberJuly 5, 2013

Page 16: Law Institute Prof. Dr. Rolf H. Weber Hong Kong University, July 5, 2013 Regulatory Framework for Cloud Computing

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Margin squeeze / Predatory pricing

Abusive market behaviorAbusive market behavior

Access rights (refusal to deal)

Discrimination

Refusal to supply

Regulatory Framework for Cloud Computing - Prof. Dr. Rolf H. WeberJuly 5, 2013

Page 17: Law Institute Prof. Dr. Rolf H. Weber Hong Kong University, July 5, 2013 Regulatory Framework for Cloud Computing

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

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page 17Regulatory Framework for Cloud Computing - Prof. Dr. Rolf H. Weber

OutlookOutlook

Increasing need for sector-specific regulation

Timely delivery issues

Avoidance of abusive market behavior

July 5, 2013