European Commission Publishes Draft Anti-Data Localisation Rules

The European Commission has today published a draft Regulation which will prevent EU Member States from implementing data localisation requirements for non-personal data, along with proposals for a self-regulatory approach to data portability for non-personal data. 

Discussions around potential legislative action by the EU to remove data localisation requirements have been discussed at length, however it was unclear whether legislation would be brought forward following delays and further consultations.

As part of the ‘Building a European Data Economy’ initiative, Member States would not be able to restrict the free movement of non-personal data apart from in specific circumstances, for example for security reasons.

The Regulation will also aim to encourage the adoption of codes of conducts for industry to facilitate the portability of non-personal data. This will be a self-regulatory approach, which techUK had previously argued was preferable to enforced regulation for data portability.

Commenting Sue Daley, techUK Head of Cloud, Data, Analytics and AI said: 

“The publication of a regulation to end data localisation requirements across the EU has been long awaited. techUK has previously called for the European Commission to take action to end data localisation and is glad to see it has listened. The European Data Economy is expected to be worth more than 106 billion euros by 2020 and removing localisation requirements will help realise that value.

“Data is global. The publication of this proposed regulation today highlights the fact that changes to EU rules on data will continue to be relevant to the UK post-Brexit. The UK and the European Union must urgently begin negotiations to secure a mutual adequacy to allow the continued free flow of data post-Brexit.

“The published text is a welcome change from previously leaked versions of the regulation proposed mandatory data portability requirements for non-personal data. The self-regulatory approach is a sensible acknowledgement of the need for business flexibility."

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