Download pdf - CROSS BORDER DATA RESTRICTIONS - kommers.se¥… · Slide title 44 pt. Text and bullet level 1 minimum 24 pt. Bullets level 2-5 minimum 20 pt. efficiency and labor productivity, Characters

Slide title

70 pt

CAPITALS

Slide subtitle

minimum 30 pt

BUSINESS IMPACT RESTRICTIONS ON CROSS BORDER DATA FLOWS

Director Government & Industry Relations Rene Summer

mailto:[email protected]

Slide title

44 pt.

Text and bullet level 1

minimum 24 pt.

Bullets level 2-5

minimum 20 pt.

Characters for Embedded font: !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷

øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰŲŲŴŴŶŶŹŹŻŻȘș−≤≥fifl

ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ

ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏѢѢѲѲѴѴҐҐәǽẀẁẂẃẄẅỲỳ№

Do not add objects or

text in the footer area CROSS BORDER DATA RESTRICTIONS | Public | © Ericsson AB 2013 | 2013-09-16 | Page 2

Ict shaping the SOCIETY

FUNDAMENTAL TECHNOLOGY DRIVERS

MOBILITY BROADBAND CLOUD DIGITIZATION

Slide title

44 pt.


minimum 24 pt.

Bullets level 2-5

minimum 20 pt.







Sources: Chalmers Institute of Technology, Arthur D Little,

OECD Broadband and the Economy, Future of Internet 2008

Significance of ICT

Increased global market reach

expanding trade but also

intensified competition,

General increase in economic

efficiency and labor productivity,

Increased pace of knowledge

diffusion and increased positive

spill-over effects,

Revised view of the role of

innovation (innovation-led growth)

Economic Impact of ICT Changing Economic Thinking > ICT

Source: Jati Sengupta, Understanding Economic Growth, Springer 2011

DIRECT INDIRECT INDUCED

Slide title

44 pt.


minimum 24 pt.

Bullets level 2-5

minimum 20 pt.







› A two-way relationship: technology drives trade and trade

drives technology innovation

› Equalizing effect on countries’ trade composition, causing

more economic integration

› Increased participation of developing countries in trade

› Regional tech-capability cohesion effect, technology

spillovers, resulting in regional convergence in capabilities

ICT impact on trade

Source: WTO , World Trade Report 2013

Driving globalization and a key source of productivity growth

Slide title

44 pt.


minimum 24 pt.

Bullets level 2-5

minimum 20 pt.







The Data factor in ICT

› Growth of connectivity – IP traffic

› Growth in stored data

› Advances in Processing:

– Automation, (IT -1960s)

– Scope (new uses as existing services go digital)

› Social Networking

– Insight (analytics driven services/models)

› Attention Economics, (advertising)

› Virtualization (efficiency):

– BYOD

– Cloud

– SDN

› Business Process Outsourcing (specialization)

› Global data flows (economies of scale)

Slide title

44 pt.


minimum 24 pt.

Bullets level 2-5

minimum 20 pt.







The common interest

›Continued digitization of the society

›Data processing is the backbone of a knowledge based society

›Non-ICT and ICT industries growth

›End users trust is a must

› It falls upon the industry and policy makers to provide adequate protective measures

Slide title

44 pt.


minimum 24 pt.

Bullets level 2-5

minimum 20 pt.







Drivers of restrictions to cross border data flows

SOCIETY PEOPLE BUSINESS culture

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=2w7bm_jaD6H27M&tbnid=Fb_pTnTo_Gd1fM:&ved=0CAgQjRwwAA&url=http%3A%2F%2Fwww.american.com%2Farchive%2F2008%2Fdecember-12-08%2Fbeware-of-investment-protectionism&ei=Ra8dUsi4KqOw7QaL9YDYAw&psig=AFQjCNEj4pyjSx4d6KjeFFtqUdHQRcopiQ&ust=1377763525762943

http://www.google.com/url?sa=i&rct=j&q=picture+of+cultural+diversity&source=images&cd=&cad=rja&docid=6oQQJ1wUqTEOhM&tbnid=wYThHrJZ6wd4xM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.ymcacambridgekw.ca%2Fen%2Fculturaldiversity%2FCDwhoweare.asp&ei=CrEdUvaWDeWM0AXxpoHwAw&bvm=bv.51156542,d.ZGU&psig=AFQjCNEpkSYHFSp6KTiGZh57Uet9qv-mWQ&ust=1377763974405905

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=YVpHtC3JmC6SCM&tbnid=O8vM82kyN8GoyM:&ved=0CAgQjRwwAA&url=http%3A%2F%2Fwww.cliffkule.com%2F2010_10_10_archive.html&ei=0bYdUrS5K-ar7AaHn4GABw&psig=AFQjCNEtKEE9uN9-n2aUw7wQ9ptCTCIeXQ&ust=1377765457855252

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=lHu0sV5Bk8PsSM&tbnid=cGiBYCJH5Os2pM:&ved=0CAgQjRwwAA&url=http%3A%2F%2Fwww.lateralthinking.biz%2Ftag%2Fprotectionism&ei=BLgdUo6kIafE7AbFn4CwBg&psig=AFQjCNHYkWrASNVsmP7seiKFNRRyVzm4SQ&ust=1377765764617578

Slide title

44 pt.


minimum 24 pt.

Bullets level 2-5

minimum 20 pt.







TYPE OF RESTRCTIONS to CROSS BORDER DATA FLOWS

ABSOLUTE BARRIERS

ECONOMIC

DISINCENTIVES

TC*

*TC = TRANSACTION COSTS

Slide title

44 pt.


minimum 24 pt.

Bullets level 2-5

minimum 20 pt.







› Forced localization of IT/Server infrastructure.

› Prohibitions to transfer customer personal data to third

country.

› Restrictions to transfer employee personal data to third

country.

› Extra-territorial regulatory dilemmas, compliance in one

jurisdiction causes non-compliance in another.

› Lengthy and burdensome transfer agreement approval

process by DPA.

› IPR-enforcement mechanism, insufficient immunities for

caching and hosting data in third country.

Examples of cross border data flow restrictions

Slide title

44 pt.


minimum 24 pt.

Bullets level 2-5

minimum 20 pt.







Revenues

› Service

Adaptation

› New Services

› Agile innovation

› TTM

Business impact of cross border data flow restrictions

Cost of Service

› Efficiency

› Scalability

› Complexity

Compliance Costs

› Direct compliance

costs not significant

for Large companies,

but very significant for

specific projects or

SME.

› Indirect impact on

revenues and cost of

service, significant

NEGATIVE IMPACT ON REVEUES AND COST OF SERVICE

Slide title

44 pt.


minimum 24 pt.

Bullets level 2-5

minimum 20 pt.







› Lessening restrictions

– Allow cross-border flows facilitating commercial data processing

– Eliminate requirements on locally based servers / IT infrastructure

– Clear roles, responsibilities and non-transferable statutory liabilities

› Efficient cross border transfer regime

– Promote CBR/Safe Harbor like instruments

– Minimize restrictions on employee data cross-border flows

– Where CBR/Safe Harbor ARE available additional approvals of DPA

should not be required, and where NOT available, institute efficient

administrative transfer processes

– No additional IPR enforcement measures beyond (TRIPS/GATT)

› International harmonization

– Accountability regime

– Risk-based approach

– Global trade promotion of commercial/digital services

Key Principles: cross border data flows (CBDF)