InfoBytes Blog
FTC asks how cloud computing affects competition and data security
On March 22, the FTC announced it is seeking information on cloud computing providers’ business practices with respect to the potential impact on competition and data security. FTC staff noted that the agency is also interested in how cloud computing is impacting specific industries, including healthcare, finance, transportation, e-commerce, and defense. The request for information (RFI) solicits feedback on a range of issues, including (i) market power and competition (e.g. do particular segments of the economy have to rely on a small handful of cloud service providers); (ii) contract negotiation flexibility; (iii) incentives given to customers to ensure they obtain more of their cloud services from a single provider; (iv) security risks (e.g. what are the data security implications if particular segments of the economy rely on a small number of cloud service providers, and are these providers competing on their ability to provide secure storage for customer data); (v) products or services tied to artificial intelligence; and (vi) how cloud providers identify and notify customers of security risks related to security design, implementation, or configuration. Comments on the RFI are due May 22.