Cloud storage providers face competition probe

Cloud storage providers are going to be investigated amid claims that some of them offer enticing contracts only to renege on them after customers sign-up.

The Competition and Markets Authority says it will begin a compliance review because the actions of some online storage providers could be in breach of consumer law.

Putting up the price by a “significant” amount or demoting ‘unlimited’ storage to a fixed capacity were all underhand tactics that the CMA has heard of and will investigate.

As much as 40 per cent of the UK population use cloud storage providers such as Dropbox, Google iDrive and Apple iCloud, typically to store photographs, music and documents.

These companies are likely to be among a reported 30 that have been notified by the CMA to give evidence to the review. Other firms and individuals can contribute too.

“If our review finds breaches of consumer protection laws we will take further action to address these,” warned CMA senior director Nisha Arora.

“[This action] could include enforcement action using our consumer law powers, seeking voluntary change from the sector or providing guidance to business or consumers.”

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Written by Simon Moore

Simon writes impartial news and engaging features for the contractor industry, covering, IR35, the loan charge and general tax and legislation.
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