New EU rules to give cloud firms legal responsibility over customer data

The European Commission is to introduce new rules in an update to the Data Protection Directive that will allow cloud providers to take legal responsibility for the data they host, in a move that could drive cloud adoption.

The changes, scheduled to be unveiled in November, will include Binding Safe Processor Rules that will let firms such as Google, Amazon and Saleforce apply to data protection authorities to be considered legally responsible for information.

Companies will have to demonstrate to the data protection authorities in a particular European member state that they meet a series of security criteria. If approval is granted, the order will be effective across the EU.

Lost data is currently the responsibility of the owner of the information, which has made many firms wary of using the cloud.

Stewart Room, a lawyer at Field Fisher Waterhouse, described the new measure as "a bridge to the cloud" that will enable more firms to take advantage of the technology without the legal repercussions should data be lost or stolen.

There will be more on this developing story which could have huge implications for cloud computing.

28 Sep 2011