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~ Wijnand Jongen ~





              sector, data plays a key role in companies’ business models,
              and data exchanges should be encouraged where it makes
              sense and where it can bring about positive developments.
              But for a sector that, to such a large extent, relies on data, it
              is imperative to ensure proper safeguards for trade secrets if
              wanting to effectively incentivise businesses to join in on the
              journey of the data economy.

              Uncertainty on international data flows jeopardises
              EU businesses’ global competitiveness
              However, there is a limit to everything, and particularly
              the Data Act’s mention of international data flows raises
              concerns. The proposal introduces technical, legal, and
              organisational measures to prevent international data
              transfers or government access to non-personal data held
              in the EU where such transfer or access would conflict
              with Union or Member State law. This could have serious       BECOME OUR
              negative consequences for businesses’ ability to transfer data
              internationally.

                                                                       COMPANY
              First of all, the European Commission says that data requests                             PLUS
              from a third country to a data processing service should be
              based on international agreements. However, the Commission
              fails to address which agreements they point to. Secondly, this   MEMBER
              element of the proposal would also risk restricting users’ free
              choice of cloud services in Europe, thus increasing red tape
              and costs, not only for service providers but also for users.

              The issue of the Commission’s vagueness on this topic is
              further fuelled by the ongoing debate on the EU-US Data
              Privacy Framework and the related issue that multiple EU   Participate in public affairs
              Member States have declared companies’ use of certain non-  activities
              EU-providers, e.g., in the field of analytics or cloud services,
              unlawful, due to the potential access by US authorities to   Get weekly and monthly monitoring
              data generated through the service. The new Data Privacy   reports on relevant policy issues
              Framework is the US and EU’s joint effort to lay down
              concrete rules for a continuous flow of transfers of personal   Get the annual European B2C
              data across the pond. However, although the ball is currently   Ecommerce Report for free
              in the EU’s court, the process ahead is still a lengthy one.
              With the many actors involved, it might take time to come
              to an agreement on whether the data protection in the      Access exclusive events
              US is “essentially equivalent” to that of the EU. The future
              of international data transfers for European businesses,   Publish your profile and guest article
              therefore, remains to be seen, but Ecommerce Europe is
              pushing EU policymakers for more legal clarity.            on Ecommerce Europe's website

              If I could look into the crystal ball, I would hope to see a
              durable solution for international data transfers, both for
                                                                           For more information visit our
              personal and non-personal data, as soon as possible. This is
                                                                               website or email us:
              key to fully unlocking the potential of the data economy in
                                                                           www.ecommerce-europe.eu
              the EU. ••
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