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Digital Single Market (DSM) Review: Business welcomes legislative proposal on data localisation requirements

10 May 2017
Digital Economy

The shift towards a European data-driven economy and the principle of free flow of data are critical in every sector represented by the American Chamber of Commerce to the European Union (AmCham EU).

With the publication of the DSM review today, AmCham EU particularly welcomes the announcement by the European Commission of a legislative proposal on data localisation later this year. 

Commenting on this announcement, Susan Danger, CEO of AmCham EU, said: “Data localisation requirements fragment the Single Market and raise costs for the deployment of cross-border data economy services. To reach the full potential of the Single Market, the free flow of data must be treated as its fifth freedom. Therefore, we need a legislative proposal establishing the principle of free flow of data and banning unjustified restrictions”. 

In taking any action on portability, AmCham EU calls for caution in adopting overly-prescriptive measures, as the data economy is still forming and there is no evidence of market failure.

While the proposal on free flow of data is a step in the right direction, the ePrivacy proposal continues to raise strong concerns for businesses. Existing and pending legislation already ensure a high-level of security and trust for consumers and businesses. This regulation risks to severely limit the potential of the data-driven economy unless it is fully aligned with the General Data Protection Regulation.