Regulation of Cloud Service Providers (CSPs)

Telecom Regulatory Authority of India (TRAI) has recommended to the Government that an industry body may be set up to regulate cloud service providers (CSPs). All industry associations have written to DoT to take them into confidence before framing any policy for regulation of the CSPs. It is not necessary to create an additional regulatory body. It is not conducive for attracting investment in this sector. As such, CSPs are not a part of the telecom sector. They are technologically different. And the ministry of electronics and IT already regulates them. The key players in this field are Amazon Web Services, Microsoft Azure, VMWare, Google, compute engine, Netmagic, Red Hat, Salesforce, Zoho, etc. There should be balance between the statutory regulation and a free market. The existing laws that apply to CSPs are the IT Act, 2000, the Indian Contract Act, 1872, the Consumer Protection Act, 2019 and the proposed Personal Data Protection Bill (PDPB), 2019.

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