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UK Competition & Markets Authority to Review Compliance in Cloud Storage Sector

Tue, 1st December 2015, 16:57

The UK’s Competition and Markets Authority (CMA) is says it’s launching a review of compliance with consumer law in the cloud storage sector amidst consumer concerns about price and service changes for cloud storage. It is estimated that 40% of UK adults use cloud storage services store photographs, music and documents.

The Competition and Markets Authority (CMA) review of consumer law compliance in this important sector follows some reports of practices and terms being used that may breach consumer law.

The CMA states it has heard about consumers being surprised by significant price increases and by reductions to unlimited storage capacity deals after contracts have been agreed. The CMA is also aware of concerns about the loss or deletion of some consumers’ data.

The CMA wants to hear from businesses about their practices and from consumers and industry experts about their experiences.

Nisha Arora, CMA Senior Director, Consumer, said:

Cloud storage is a dynamic and growing sector which is already highly valued by consumers.
We want to hear from business, interested organisations and consumers about their experiences, to assess whether companies understand and comply with consumer law and whether cloud storage services are working well for consumers as a result.

If our review finds breaches of consumer protection laws we will take further action to address these, which could include enforcement action using our consumer law powers, seeking voluntary change from the sector or providing guidance to business or consumers.

Amongst the biggest providers are Amazon, Dropbox, Google Drive and Apple's iCloud.

The CMA’s review will assess how widespread these practices are, whether they breach consumer law and how they are affecting consumers. The review is open for responses until 15 January 2016 and a final report is expected in the spring of next year.