DIGITALEUROPE views on the Regulation on the Framework for the Free Flow of Non-Personal Data

EXECUTIVE SUMMARY

DIGITALEUROPE, as the voice of Europe’s digital technology industry, welcomes the general principle of free flow of data and reinforces the importance of banning national data localisation rules. This principle will provide legal certainty for companies, boost the European economy and herald new innovative technologies.

Recent studies show that data localisation reduces competition and increases storage costs with up to 120% for companies and consumers. If existing data localising measures are removed, GDP gains are estimated to up to 8 billion euros per year (up to 0.06% of GDP), which is on par with the gains of recent free trade agreements (FTAs) concluded by the EU.1 This Regulation represent an opportunity not to be missed.

However, to maximise the benefits of cross border dataflows, the scope should not be narrowed. In our opinion, Member States should be able to localise non-personal data in only exceptional cases. Any limiting the scope and widening the exemptions will risk defeating the purpose of the Regulation.