Experts wary of data panel curveball on Big Tech, social firms
Big Tech and social media companies are concerned that a proposed committee may recommend curbs on certain data categories, although IT Minister Ashwini Vaishnaw has assured the data Rules published Friday don't amount to a back-door entry for data localisation requirements.
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“With a proposed committee recommending that certain personal data may be restricted from being transferred outside India, this would be an additional compliance/restriction to existing regulatory landscape,” Sajai Singh, Partner, JSA Advocates and Solicitors, told ET.
Meanwhile, legal experts applauded the reliance of information from educational institutes for age-gating, saying it could be used to ensure parental consent is verifiable.
Lawyers believe there are significant business costs to India Inc if the government insists on data localisation. This will involve reciprocal requests from other countries with which India has significant business relationships, said Akash Karmakar, partner at law firm Panag & Babu.
“Insisting on localisation could also be viewed as the imposition of a non-tariff trade barrier by the Indian government,” Karmakar said.
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