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Europe Needs Courageous Action to Ban Data Localization
Nov 30,2016

By Erich Clementi
Chairman and Senior Vice President, IBM Europe

The ability of organisations to gather and use data from across the EU is far from being a dry policy debate. It will determine whether Europe is serious about being in the vanguard of the data revolution. And in some cases, it can even help save lives.

A premature baby’s brain is often not sufficiently developed to tell its body how to react to signs of illness. Many premature babies have their brain activity monitored (EEG) in neonatal intensive care units. The challenge in most hospitals is that there are many more babies at risk than neurophysiologists with the expertise to interpret the monitoring data. The Irish Centre for Foetal and Neonatal Translational Research has partnered with IBM to develop a system that can analyse real-time data 24/7, comparing the data with similar cases and automating detection of neurological dl-boxcloud-com1problems in newborns. As a result, the outlook for premature babies is much brighter. However, for the system to be most effective, it needs to be able to compare data from as many cases as possible across medical institutions in different countries. Unfortunately, we are now facing a situation where EU countries could be allowed to block data – including critical data such as this – from flowing to other EU countries. The European Commission must not allow this to happen.

The EU is aiming to become a world leader in the digital economy through its Digital Single Market (DSM) strategy. However, if the EU will not act now to guarantee the free movement of data across the EU, the quest for a Digital Single Market will be nothing other than a failure.

Whether it’s an SME developing software for fraud detection, a developer creating an app for patients or a small outsourcing business that manages the payroll of large companies, or hospitals securely accessing potentially life-saving information, organizations need to be able to access data that is stored in other EU countries. Just as European people, goods services and capital can move freely throughout the EU, so too should data.

On paper, the European Commission supports the free flow of data. Its leaders have repeatedly stated the EU’s commitment to outlawing data localization – where national governments legislate to keep all data within their own borders. Which is why we at IBM, like many investors in Europe, are dismayed by recent reports that the European Commission’s stance is wavering on banning data localization, under pressure from France and Germany.

This last-minute wobble is because some governments and businesses have decided that free movement of data is not in their interests. Let us not be fooled by any pretence that this is about data protection. After all, we soon will have a new EU-wide General Data Protection Regulation that will apply uniform data privacy protections throughout the EU. As long-standing guardians of customer data, we know what good data protection looks like. Instead, these governments and businesses are motivated by protectionism, wanting to force businesses to use data centres owned and based nationally.

The DSM is a huge opportunity for the EU to lead the data revolution. Each year, it could drive an additional 450 billion euros into the union’s economy. It will help improve the lives of Europeans – their healthcare, mobility, security and more. If the EU is truly serious about getting this right, it must stand firm against protectionists who are prepared to shackle the data economy for their own vested interests, and propose a law that will – with very limited and justifiable exceptions – guarantee free movement of data within the EU.

At a time where openness and global trade are coming increasingly under threat, European citizens need courageous leaders. In this week’s discussions on the free movement of data, the European Commission must show that courage.

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Media Contact
Tineke Dullaart-Mertens
+31-6-200-150-92
tineke.mertens@nl.ibm.com

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