Big Tech vs Reliance Industries and Paytm on data localisation row – Deccan Herald

Reliance Industries Ltd and Paytm have been on opposing ends of the spectrum with Big Tech companies such as Google, Meta and others on the issue of data localisation in the Data Protection Bill.

Domestic companies favouring data localisation said that the mandate of the Joint Parliamentary Committee regarding the Bill is not strict since it has allowed two years to put the infrastructure in place. This was said in a meeting of the Internet and Mobile Association of India, as reported by Business Standard.

Further, they added that some members were not taking concerns of national security seriously and that they did not agree with it. Giving the example of China, they stated that it has proved to be a good use case with no adverse impacts.

However, the CEO of a leading global tech company responded saying, The issue of national security is something the government has to deal with. It is unfair to ask the private sector to do that.

Agreeing that data localisation will increase the burden of compliance, Paytm has stated that if companies want to run businesses in India, they have to deal with that. It also believes that no evidence shows localisation of data hurts the payments sector.

With Big Tech companies opposing the move, one has said there is real socio-economic value in facilitating cross-border data flows, according to research by bodies like the Indian Council of Research on International Economic Relations and CUTS International.

The Big Tech companies have also pointed out that data flow will support innovation and startups in different sectors while also arguing that the move could lead to socio-economic consequences and have fallouts in bilateral trade agreements, the publication reported.

A senior executive of a global company who was represented in the discussions said: "What constitutes critical personal data where data storage has to be in India has still not been defined. On critical personal data, the definition is so expansive that anything including an uploaded photo can come under it."

Some have stated that if these rules are imposed on SAARC countries, this could cause problems

Earlier, the IAMAI also stated that data localisation should not be a part of the bill and also demanded the removal of criminal penalties, alongside objecting to the inclusion of non-personal data in the Bill. This was in contrast to the recommendations of the expert committee appointed by MeitY for a framework for non-personal data governance.

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Big Tech vs Reliance Industries and Paytm on data localisation row - Deccan Herald