The Uncertain Future: Privacy and Security in Cloud Computing
James C. Ryan · Santa Clara Law Digital Commons (Santa Clara University) · 2014
Despite the numerous technical benefits of cloud computing, consumers must consider the significant question of what legal rights and responsibilities these new technologies trigger.As with most new technologies, the applicability of existing laws, the possibility of new laws tailored specifically to the new technology, and the specter of future regulatory action, all remain unclear.Although the modern world is truly a global economy, and cloud computing touches virtually every corner of the globe, this Comment will focus on the differences between United States and European Union law to illuminate the difficulties facing the market for cloud computing.These legal uncertainties pose significant risks to cloud service providers and consumers alike.Service providers' management structures are forced to balance the reward of investing in new technologies with the risks posed by lawsuits under existing laws and the distinct possibility that their firm will be exposed to significant new and unforeseeable liabilities under future laws and regulations.Large companies looking to utilize these new services must rely mostly on skilled contract writing, rather than clear industry or government enforced standards, to protect their rights and liabilities.Individuals and smaller companies, on the other hand, are essentially unable to negotiate and are thus subject to adhesion contracts with whatever terms the various service providers happen to include.This Comment will demonstrate that the uncertainty caused by ambiguous enforcement of existing laws, a lack of clearly applicable regulations, and inconsistent industry standards regarding privacy and security concerns, result in a high degree of risk for the cloud computing industry.This uncertainty, in turn, suppresses both supply and demand.In order to establish the existence of uncertainty and the problems therein, I will discuss the applicable economic theory, 1 define cloud computing, 2 discuss the societal importance of the technology and law, 3 identify political players, 4 1.See infra Part I.A. outline the applicable laws and regulations and 2. See infra Part I.B. 3. See infra Part II. 4. See infra Part I.C.