Cybersecurity Spillovers

Investor logo

Warning

This publication doesn't include Institute of Computer Science. It includes Faculty of Law. Official publication website can be found on muni.cz.

Authors

ZARSKY Tal Zvi VERSTRAETE Mark

Year of publication 2021
Type Article in Periodical
Magazine / Source Brigham Young University Law Review
MU Faculty or unit

Faculty of Law

Citation
Web https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3877883
Keywords cloud computing; GDPR; cybersecurity; procurement; externalities; 'brussels effect'
Description This Article identifies and analyzes a previously unrecognized source of positive externalities within cybersecurity, which we term “cybersecurity spillovers.” Most commentators have focused on negative externalities and market failures, leading to a pervasive pessimism about the possibility of adequate cybersecurity protections. In response, this Article demonstrates that unique dynamics from cloud computing—most notably, indivisibility—may force cloud service firms to generate spillovers. These spillovers are additional security protections provided to the common cloud users; clients who may have not been willing or able to acquire these security services otherwise. Furthermore, this additional source of security offsets some of the most pernicious effects of negative externalities and market failure which commonly plague the cybersecurity ecosystem. Alongside its descriptive analysis of cybersecurity spillovers, this Article alerts policymakers about potential analytical tools which can be used to identify the most beneficial spillovers. Moreover, it offers recommendations for specific interventions that will promote spillovers and improve the state of cybersecurity generally. In particular, this Article explains that policymakers could promote indivisibility and strengthen spillovers by tailoring liability rules. Such enhanced liability might incentivize premium cloud service clients to demand robust protections across the entire platform. In addition, the Article addresses the relationship between market concentration and spillovers. It provides recommendations for preserving spillovers even without concentration in the market for cloud storage. And finally, the Article suggests how the government’s cloud services procurement and tender processes can be utilized to amplify the beneficial effects of spillovers.
Related projects:

You are running an old browser version. We recommend updating your browser to its latest version.

More info