Competition law and interoperability in cloud computing

Abstract

The cloud computing industry is a swiftly growing sector, with many providers hailing it as a “digital revolution” that will render traditional IT business models obsolete within ten years. Although still under development, the range of circumstances to engage in monopolistic and anti-competitive behaviour in the cloud services market are numerous. Suppliers can engage in tying, exclusive dealing, and refusing to share vital information to allow the creation of technically compatible products. Monopolistic behaviour and pricing strategies can also restrict innovation and result in a lessening of competition.This paper reviews the European laws that have a direct effect on competition in the cloud computing industry. In addition to competition law, other areas of law have an impact on competition in cloud services. Merger regulations for example have a direct effect by controlling market concentrations in the cloud and technology industry.Interoperability has emerged as a key policy and legal consideration in cases concerning competition and merger laws. The concept of interoperability has arisen in cloud computing cases, as well as other areas of law that indirectly impact upon openness and competition. These areas include intellectual property and standardisation.As new areas of interest arise that raise enforcement challenges for regulators, the author maintains that current laws are adequate to meet the competition concerns in the diverse cloud services market.