Transborder Data Flows at Risk

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Physical borders may be technically irrelevant in the age of online business, global corporate groups, and cloud computing, but they retain legal and cultural significance. Some recent developments in data privacy law around the world suggest that the 'free flow of information' is becoming more conditional, and that enterprises will have to be nimble to meet the expectations of regulators, consumers, and employees when the organization wants to move personally identifiable data from one country to another. The proliferation of comprehensive data privacy laws, more or less on the European model, increasingly requires US-based multinationals and online companies to adapt to strict requirements for dealing with individuals in other countries. While the rules may soon become more uniform in the EU, they are still new and uncertain in many other countries.

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