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

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.