Cloud Portability and Interoperability under the EU Data Act: Dynamism versus Equivalence

19 Pages Posted: 13 Apr 2023

See all articles by Sean F. Ennis

Sean F. Ennis

Centre for Competition Policy, University of East Anglia; Norwich Business School, University of East Anglia

Ben Evans

University of East Anglia (UEA) - Centre for Competition Policy

Date Written: March 05, 2024

Abstract

This paper examines the provisions of the EU Data Act relating to cloud portability and interoperability through a joint economic and legal lens. The cloud industry is characterised by dynamic competition for the market underpinned by high levels of service innovation and customisation. We find that insufficient thought appears to have been given to the potential implications of these provisions, which envisage relatively static competition between 'equivalent' services, pursue standardisation and unbundling and introduce mandatory contract law. We suggest that the minutiae of the definition of 'equivalence' are quite different from portability and interoperability rules for simple products due to feature complexity and ongoing innovation. While a certain level of portability and interoperability are natural and essential for customers, the breadth of net cast by 'equivalence' could yield unintended consequences that not only lead to operational challenges but even product simplification to a lowest common denominator, reducing availability of the cloud computing service variety that customers seek. Overall, we are concerned that the EU Data Act may disincentivise innovation, harm smaller providers and strengthen the position of incumbents. We propose a way forward that seeks to protect and stimulate dynamic competition and innovation in the EU market for cloud computing services.

Keywords: data, portability, interoperability, cloud, switching, K20, L51, L86, O31

JEL Classification: K20, L51, L86, O31

Suggested Citation

Ennis, Sean F. and Evans, Ben, Cloud Portability and Interoperability under the EU Data Act: Dynamism versus Equivalence (March 05, 2024). Available at SSRN: https://ssrn.com/abstract=4395183 or http://dx.doi.org/10.2139/ssrn.4395183

Sean F. Ennis (Contact Author)

Centre for Competition Policy, University of East Anglia ( email )

United Kingdom
+44 (0)1603 591622 (Phone)

HOME PAGE: http://www.competitionpolicy.ac.uk

Norwich Business School, University of East Anglia ( email )

Norwich
NR4 7TJ
United Kingdom
+44 (0)1603 591622 (Phone)

Ben Evans

University of East Anglia (UEA) - Centre for Competition Policy ( email )

UEA
Norwich Research Park
Norwich, Norfolk NR47TJ
United Kingdom

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