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Could the Recently Enacted Data Localization Requirements in Russia Backfire?
Journal
Journal of World Trade
ISSN
0022-5444
ISSN-Digital
1011-6702
Type
journal article
Date Issued
2016-02-22
Author(s)
Abstract
In the wake of ex-NSA contractor Edward Snowden's surveillance revelations to the global public, and despite an unimpeded cross-border data flow and knowledge transfer being a pre-requisite for the development of the digital economy, governments around the world are increasingly tending to resort to mandatory local data storage and to restrictions and bans on data transfers in a rather drastic attempt to protect their citizens' data security and privacy. This paper discusses the legal and economic aspects of the recently enacted data localization requirements in the Russian Federation, as well as the consequences for costs, uncertainty, and the hampering of business activities that may arise if they are applied unaltered. A principal conclusion reached is that a less extreme solution that adheres to or builds upon the existing global practices and takes into account non-economic goals should be considered. The study concludes with recommendations on the basis of two questions. First, can other countries offer Russia less extreme solutions in terms of uncertainty and financial expenditure? Second, how can Russia benefit from subject-related international cooperation?
Language
English
HSG Classification
contribution to practical use / society
HSG Profile Area
SEPS - Economic Policy
Refereed
Yes
Publisher
Kluwer Law International
Publisher place
London
Volume
50
Number
2
Start page
313
End page
333
Subject(s)
Division(s)
Eprints ID
247544