Recently, the Indian government proposed a new data act that would regulate all the “non-personal” information. This would immediately affect various tech firms, including US giants like Facebook, Amazon, and Google, who are planning on pushing back against these proposals, according to Reuters report.
Back in July 2020, a government panel recommended setting up a regulator for information that is anonymized. The panel also proposed a mechanism for firms to share data with other entities, citing a spur in the digital ecosystem. If this system was adopted by the government, a new law would form to regulate such data. However, the U.S.-India Business Council (USIBC) called out this system.
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According to the group that is also a part of the U.S. Chamber of Commerce, the new data sharing act “anathema” would be promoting competition and says that it “undermines investments made by companies to process and collect such information.” USIBC letter stated that “USIBC and the U.S. Chamber of Commerce are categorically opposed to mandates that require the sharing of proprietary data.”
This letter has yet to be completed but will be submitted to India’s information-technology ministry in the arriving few weeks. The new data sharing act is the latest move which is another issue that big data companies face. More and more nations have been forming tighter rules and regulations around e-commerce and data storage. With India now proposing a “forced data sharing,” foreign trade and investment in developing nations would be limited.
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