The question of the free flow of data is still creating divisions among member states. At the Telecommunication Council on Friday 2 December, more than half of all member states presented an unofficial document calling for an end to localisation. This dossier was also on the agenda of the ministers’ working dinner.
As part of its strategy for a single digital market, the Commission has made a commitment to present an initiative in support of the free flow of data in the EU. This aims to remove restrictions on free flow, except for the protection of personal data, as well as remove unjustified restrictions on data localisation for storage or processing purposes.
The initiative was expected before the end of the year but while addressing journalists last week, Vice President Andrus Ansip recognised that things were more complicated than expected and stated, “We now have a good idea of the problem but there is no consensus yet… We hope to present a communication on this subject in January and a regulation in the middle of the year”.
The European Union currently has 50 different examples of legislation on data localisation in 21 member states (France and Germany, for example). In its roadmap published on 3 October, the Commission indicated that if these localisation measures were removed, Gross Domestic Product in the European Union could increase by up to € 8 billion a year (up to 0.06% of GDP). On the basis of this argument, 14 member states are calling on the European Commission to put an end to unjustified data localisation, which they claim undermines innovation, creates a burden on cloud computer provider services and puts a brake on energy efficiency. The countries arguing this case include Belgium, Bulgaria, Czech Republic, Denmark, Estonia, Ireland, Lithuania, Luxembourg, the Netherlands, Poland, Slovenia, Sweden and the United Kingdom. These countries also argue that, “As a general principle, it should not matter where data are stored, but rather how data are stored. It is important that adequate safeguards in regard to confidentiality, availability and integrity are in place, but there are now alternatives to localisation requirements that allow for equal or greater data security criteria”.
They also outline four key principles for guiding the future regulation: (1) direct or indirect localisation must be avoided, including for public procurement; (2) exceptions to this general principle must be applied only when it is necessary and justified (public interest); (3) these rules must be defined and interpreted in a harmonious way throughout the EU; (4) at any moment member states must be able to restrict data flows for national security reasons.
This group of countries is up against another group of member states headed by France, which believes that a regulation in this dossier is unnecessary. At the end of the Council, the French Secretary of State for the Economy and Finance, Axelle Lemaire, stated, “The Commission has not provided proof that there are problems in this domain. We believe that the free flow of data is more of a solution than a problem”. (Original version in French by Sophie Petitjean)