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December 1, 2015

UK to probe cloud storage providers over consumer prices

News: The review follows consumer concerns on price and service changes.

By CBR Staff Writer

The UK’s Competition and Markets Authority (CMA) is launching an investigation on how the cloud storage sector may be affected by consumer law due to increasing concerns over pricing and service charges.

About 40% of UK adults currently use cloud storage services for storing photographs, music and documents.

The CMA said its review follows several reports of practices and terms being used by the cloud storage providers that may breach consumer law. It was also concerned on reports of consumer data being lost or deleted.

Consumer complaints to the CMA include significant price hikes and reductions in cloud storage capacity after contracts had been agreed.

The watchdog said it wants to hear from businesses, consumers and industry experts. The review is open for responses until 15 January 2016.

CMA senior director of consumer Nisha Arora 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.

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The regulator said it could take legal action against companies that it finds are breaking the law. It will also seek voluntary agreements from the industry for making changes.

 

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