Cloud storage services are consumer level and store data such as photos, music, videos, and documents. Microsoft’s OneDrive is an example of this type of service. These storage solutions are also higher scale for businesses, but the CMA was more concerned with standard customers. The authority asked the service providers to give sufficient notice before making such changes. The request also applied to suspending and closure of a service. Importantly, customers should be allowed to receive a pro-rata refund if they do not accept the changes. Equally, there should be a clear ability to cancel a contract.
Cloud Storage Agreement
This is something of a win for the CMA, especially in the light of increased cloud storage use. The group estimated that three in 10 British adults use cloud storage solution. In most cases, consumers opt to use the free services provided by the leading names in the market. Because all the companies agreed, the CMA can end an investigation that started in 2015. Also, the authority will not have to proceed with any legal action: “This latest action brings to an end the CMA’s current review of compliance with consumer law in the cloud storage sector. During this review, 10 cloud storage providers co-operated and constructively engaged with the CMA and voluntarily agreed to make improvements to their terms and conditions.” Microsoft says it will now inform a user if it intends to close an account for going over storage limits. The company also made an interesting promise to not shut down inactive accounts, if they are fully paid.
