The Trouble with the TPP yesterday examined the barriers to data localization requirements, an emerging policy choice for countries concerned with weak privacy protections once personal data is transferred outside the country. The TPP goes further in undermining potential privacy protections, however, as it also establishes a ban on data transfer restrictions (prior posts in the series include Day 1: US Blocks Balancing Provisions, Day 2: Locking in Digital Locks, Day 3: Copyright Term Extension, Day 4: Copyright Notice and Takedown Rules, Day 5: Rights Holders “Shall” vs. Users “May”, Day 6: Price of Entry, Day 7: Patent Term Extensions, Day 8: Locking in Biologics Protection, Day 9: Limits on Medical Devices and Pharma Data Collection, Day 10: Criminalization of Trade Secret Law, Day 11: Weak Privacy Standards, Day 12: Restrictions on Data Localization Requirements).
Data transfer restrictions are a key element of the European approach to privacy, which restricts data transfers to those countries with laws that meet the “adequacy” standard for protection. That approach is becoming increasingly popular, particularly in light of the Snowden revelations about governmental surveillance practices. Several TPP countries, including Malaysia, Singapore and Chile, are moving toward data transfer restrictions as are countries such as Brazil and Hong Kong.