Policy Proposal: Restricting Cross-Border Data Transfer and Storage of User Data by Companies
Title:
Data Sovereignty and Privacy Protection Act: Safeguarding User Data from Cross-Border Transfer and Storage
Purpose:
This proposal aims to restrict companies from transferring and storing user data in foreign countries. By implementing these restrictions, we can protect user privacy, maintain data security, and uphold national control over sensitive information. The primary objectives are to mitigate risks associated with foreign data processing, ensure compliance with domestic data protection laws, and preserve the digital rights of citizens.
Rationale for Restricting Cross-Border Data Transfers
- Enhanced Data Security and Privacy
Transferring user data to foreign servers, especially to countries with lower data protection standards, exposes sensitive information to increased risks of unauthorized access, misuse, and cyberattacks. Keeping data within national borders allows for stricter oversight, reducing the likelihood of data breaches and enhancing overall security. - Strengthened Compliance with Domestic Privacy Regulations
Domestic data protection laws, such as the GDPR in the European Union or the CCPA in California, offer strong protections for user data. When companies transfer data abroad, enforcing these standards becomes more challenging, increasing the risk of non-compliance. By requiring companies to store and process data within the country, regulatory bodies can more effectively monitor and enforce compliance, ensuring that user privacy is upheld. - Mitigating Risks of Foreign Government Surveillance
Data transferred to foreign servers can be subject to the legal and surveillance frameworks of those countries. For example, if data is stored in jurisdictions with invasive surveillance laws, it may be subject to government access without the consent or knowledge of the individuals. Limiting cross-border data storage would protect users from unwarranted foreign government surveillance. - Economic and National Security Benefits
Data has become a valuable asset in the modern economy. Allowing data to be stored and processed within national borders keeps valuable information under national control and strengthens data sovereignty. Additionally, by enforcing domestic data storage, countries can reduce dependency on foreign data centers, encouraging the growth of domestic data infrastructure and the local tech industry.
Key Components of the Proposed Policy
- Mandating Domestic Storage and Processing of User Data
All companies collecting personal data from citizens must store and process this data within the country’s borders. Sensitive data, including financial, health, and biometric information, must be stored on servers located within national jurisdiction to ensure it remains under the protections of domestic laws. - Data Transfer Restrictions with Specific Exemptions
Cross-border data transfers should be prohibited unless:
- They are essential for international business transactions, in which case they must be authorized by a regulatory body.
- The destination country provides adequate data protection measures, which should be periodically reviewed.
- Specific and explicit user consent is obtained, with clear disclosure of the associated risks.
- Creating a Certification Process for Data Localization
Companies would need to undergo a certification process demonstrating compliance with data localization requirements. This certification would be monitored by a national data protection authority to ensure continued compliance with storage and processing mandates. - Supporting the Development of Domestic Data Infrastructure
To assist companies in meeting these requirements, government initiatives could offer financial incentives for building domestic data centers and cloud services. These incentives would promote a robust local data infrastructure, reducing reliance on foreign data storage providers.