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Liability for Wrongful Data Deletion in Cloud Services: Interactions Between the Digital Services Act and the Product Liability Regime

Pavel Koukal

Citation: Pavel Koukal, Liability for Wrongful Data Deletion in Cloud Services: Interactions Between the Digital Services Act and the Product Liability Regime, in: Jusletter IT 29 July 2026

Cloud service providers increasingly integrate automated and AI-driven moderation systems into their infrastructures to identify illegal or policy-infringing content. Although these systems are vital to contemporary digital governance, their deployment introduces substantial risks, particularly in the form of erroneous or disproportionate content removal. Users may find their files deleted, their accounts suspended, or their access restricted without receiving a meaningful explanation or an adequate opportunity to contest such actions. This article examines the liability of cloud service providers for wrongful data deletion under two complementary frameworks: the Digital Services Act, which introduces procedural and diligence-based obligations enforceable through Article 54, and the revised Product Liability Directive, which extends strict liability to defective software and cloud-based services and recognises the destruction or corruption of non-professional data as compensable harm. The analysis demonstrates that these regimes operate cumulatively and cannot be contractually waived, notwithstanding widespread attempts by providers to exclude or limit liability. The article argues that the convergence of the DSA and PLD fundamentally reshapes the legal landscape governing cloud services and imposes a heightened standard of care appropriate for a digital environment increasingly shaped by algorithmic decision-making.


Table of contents

  • 1. Introduction
  • 2. Cloud Services Within the Framework of the Digital Services Act
  • 3. Liability for Wrongful Data Deletion under Article 54 DSA
  • 4. Compensable Digital Damage and the Revised Product Liability Directive
  • 5. Defectiveness of Cloud Services and Automated Moderation Tools
  • 6. Contractual Limitations, Consumer Protection and Private International Law
  • 7. Conclusion
  • References
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