Brussels – November 29, 2016 –  In a joint letter to Member States, leading business organisations (ICDP (Industry Coalition for Data Protection) have voiced their concerns about the rising use of data localisation requirements in some EU Member States and the Commission’s recent decision not to issue a strong regulatory proposal in support of the free flow of data principle.  “Data localisation requirements run counter to the spirit and objectives of the Single Market. Such measures will result in market fragmentation, impeding the flow of services, goods and capital and reducing the EU’s attractiveness for foreign investments” said Thomas Boué, BSA Director General, Policy-EMEA. “We urge Member States to secure the EU’s path towards growth and strengthen its Single Market by supporting a strong and ambitious EU initiative that will firmly establish the free flow of data principle in a Regulation” he concluded. 

Data localization requirements typically mandate storing data in a datacenter that is physically situated in the same country where the data originated. Cross-border data movements underpin every economic activity, cutting across sectors, industries and value chains. They have become an essential component of the Single Market, enabling key technologies that empower individuals, businesses and governments.

View the letter here.