Journal of Research and Development in Comparative Law

Journal of Research and Development in Comparative Law

Competitive Analysis of Abuse of Dominant Position in Cloud Computing Market (A Comparative Study in European Union and Iranian Law)

Document Type : scientific research paper

Authors
Javad Hoseinzadeh 1
masumeh akbarian 2
1 Associate Prof. Department of Private Law, Faculty of Law, University of Science and Culture, Tehran, Iran.
2 Ph.D. in Private Law, Faculty of Law, Shahid Beheshti University, Tehran, Iran
10.22034/law.2025.2053026.1610
Abstract
With the expansion of cloud computing technology and the increasing monopoly power of cloud service providers, the issue of abuse of dominant position has faced serious challenges.
Therefore, it is essential to deleneiate the position of abuse of dominant position in the cloud computing market.
Among its obvious examples are exclusive transactions, linkage arrangements, package sale, self-preferential behavior, unfair terms, and non-cooperation, which lead to the prevention of competitors from entering or eliminating them from the market and ultimately harming consumers.
Using an analytical-descriptive method, this study analyzes the position of Iranian competition law by studying the approach taken by European Union law.
The examination of the issue in the competition rules of the European Union law shows that establishing the fact that a cloud service provider has taken a dominant position requires a careful assessment of competitive components such as the use of network effects, economic benefits derived from scale of development, the possibility of parallel use of services from different providers, and the degree of consumer dependence on a particular provider.
The results of this comparative study show that although the aforementioned practices by cloud service providers are often subject to competition violations, the positive competitive consequences or their rational justification should not be overlooked.
These instances are evaluated based on the rule of reasonableness and with regard to the criterion of distortion of competition.
In contrast, in Iranian law, the regulations are not sufficiently explicit, but the prohibition of these actions can be inferred from several articles of the Law on the Implementation of General Policies of Article 44 of the Constitution and the provisions of the Supreme Council for Cyberspace.
Therefore, it is proposed to draft comprehensive competition regulations to maintain competition in the cloud services market, taking into account new developments in the field of information technology.
Also, considering the importance of computing resources and the dependence of consumers on cloud infrastructures, it is necessary for the Competition Council to adopt appropriate and flexible measures, with an approach based on international standards, to prevent abuse by cloud service providers and their limiting access to cloud computing resources.
Keywords
cloud computing
abusive practices
dominant position
cloud service providers
distortion of competition

Subjects

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