Expert group to begin work on new cloud computing contract terms

The 30-strong group of individuals and companies, which includes Telecom Italia and UK-based cloud provider Skyscape, are tasked with identifying "safe and fair contract terms and conditions for cloud computing services for consumers and small firms". Use of the terms within cloud computing contracts would be optional.

The expert group is due to report back with recommendations in spring 2014 and it is set to inform the Commission's own policy when it sets out a "broad public consultation on possible ways forward on cloud computing contracts for consumers and SMEs".

In September 2012 the Commission announced that it would draw up new model contract terms for cloud computing as part of a wider strategy entitled 'Unleashing the Potential of Cloud Computing in Europe'. At the time it said that the development of "safe and fair contract terms and conditions" could help improve the trust that businesses have in cloud providers.

The Commission has also bemoaned what it sees is the imbalance in negotiating power that many cloud providers have over all but the largest of companies when seeking to agree data storage arrangements and other forms of cloud computing contracts.

"Model contract terms can help to facilitate contractual arrangements between cloud computing service providers and consumers and small firms," the Commission said in a statement. "They can also facilitate the application of EU data protection rules to the extent that they are relevant to cloud computing contracts."

Amongst its tasks, the expert group will also consider how the development of new cloud computing contract terms could interact with the proposed Common European Sales Law (CESL) currently under development, such as when internet users purchase digital content stored in the cloud.

It is envisaged that CESL would offer businesses and consumers entering into distance contracts, such as through transactions made over the internet, an optional legal framework upon which to base their contract and resolve any subsequent disputes.

"The 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," the Commission said.

European Commission Vice President Viviane Reding said that 2.5 million new jobs could be created in Europe if the full potential of cloud computing within the area is realised.

"We are 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," Reding said. "Trust is bankable – citizens need to be able to trust that the services they use are fair and reliable."

In June the Commission said it could also set up a separate expert group in future to specifically "work on personal data protection aspects relevant to cloud computing contracts".