At the European Council (24-25 October 2013), the EU leaders called for the European actions in order to create a single market for cloud computing. The Commission has quickly reacted to the European Council's message establishing the expert group.
The issue is important: making full use of the opportunities presented by cloud computing could create 2.5 million extra jobs in Europe and add around 1% a year to EU's Gross Domestic Product by 2020.
Message from the Commission
Vice President V. Reding, the EU's Justice Commissioner send a message to the expert group underlining that the Commission was asking experts to provide a balanced set of contract terms for consumers and small and medium-sized enterprises to use cloud computing services with more confidence. "Trust is bankable, said the Commissioner, citizens need to be able to trust that the services they use are fair and reliable."
The Expert Group is part of the Commission's push to enhance trust in cloud computing services and unlock their potential for boosting economic productivity in Europe. It is one of the key actions under the Commission's Cloud Computing Strategy, which was adopted in 2012 (see IP/12/1025 and MEMO/12/713) and is meant to tackle cloud-related issues that go beyond the Common European Sales Law currently under negotiation (See: MEMO/13/792).
Reference: European Commission, Press release, – IP/13/990, Brussels, 28 October 2013.
Need for actions in the EU Digital Single Market
On 27 September 2012, the European Commission adopted a strategy for "Unleashing the potential of cloud computing in Europe" (see IP/12/1025). The strategy is designed to increase the use of cloud computing in the member states' economic development.
The Expert Group is a key part of this strategy and the Commission's efforts to further boost the Digital Single Market. It builds on other legislative initiatives already put forward such as the EU data protection reform (see MEMO/13/923) and the proposed Optional European Sales Law (see MEMO/13/792).
The expert group main task is, with assistance from the Commission, to help member states to explore ways to improve the legal framework for cloud computing contracts for consumers and SMEs (see IP/13/590), so as to strengthen consumers' and SMEs' confidence in using cloud computing contracts.
'Cloud computing' refers to the storage of data (such as text files, pictures and video) and software on remote computers, which users access over the internet on the device of their choice. This is faster, cheaper, more flexible and potentially more secure than on-site IT solutions. Many popular services such as Facebook, Spotify and web-based e-mail use cloud computing technologies but the real economic benefits come through widespread use of cloud solutions by businesses and the public sector.
Commission's cloud computing strategy: several proposals
The Commission's cloud computing strategy comprises numerous key actions; for example, one of which aims to identify safe and fair contract terms and conditions for cloud computing contracts. Model contract terms can help to facilitate contractual arrangements between cloud computing service providers and consumers and small firms.
The contract terms can also facilitate the application of EU data protection rules to the extent that they are relevant to cloud computing contracts.
The European Commission's data protection reform proposals, which were backed in the beginning of October 2013 by an overwhelming majority in the European Parliament (see MEMO/13/923), will also establish a framework that will help encourage the development of cloud computing services. A swift adoption of the data protection reform would support the development of the digital single market, and help ensure that consumers and SMEs will benefit fully from growth in digital services and in cloud computing.
With the proposal for a Common European Sales Law, the Commission has already started to improve the legal framework for cloud computing contracts (see MEMO/13/792). A Common European Sales Law will establish an optional EU-wide sales law, including fair and balanced rules, that consumers and SMEs will be able to use when buying digital products like music or software by downloading them from "the cloud".
Established expert group will do specific complementary work for those issues that lie beyond the Common European Sales Law to make sure that other contractual questions relevant for cloud computing services can be covered as well, by a similar optional instrument.
Perspectives
The expert group on cloud computing includes representatives of cloud service providers, consumers and SMEs, academics and legal professionals (the list is available in the Annex in references below).
The first meeting is scheduled for 19-20 November 2013 and the group is expected to report back in spring 2014. The input will feed into a policy paper launching a broad public consultation on possible ways forward on cloud computing contracts for consumers and SMEs.
