The federal government on Friday proposed a brand new knowledge privateness legislation that may enable corporations to switch customers’ private knowledge to sure international locations overseas, the newest regulation that may have an effect on how tech giants resembling Fb and Google function out there. The draft invoice comes after the federal government in August withdrew a 2019 proposal that had alarmed huge know-how corporations by proposing stringent laws on cross-border knowledge flows.
Within the new draft launched on Friday, the federal government mentioned it might specify international locations or territories exterior India to which entities managing knowledge can switch private knowledge of customers.
“Cross-border interactions are a defining attribute of at this time’s interconnected world … Private knowledge could also be transferred to sure notified international locations and territories,” the federal government mentioned in an announcement.
Corporations together with Fb, Twitter and Google have for years been involved with many know-how sector laws in India, which have additionally strained relations with the USA in recent times.
The brand new invoice additionally proposes monetary penalties on corporations for incident associated to knowledge breaches. It additionally says the federal government would have powers to exempt state businesses from provisions of the invoice within the curiosity of nationwide safety.
Again in August, the federal government withdrew the Private Knowledge Safety Invoice, saying it was engaged on a brand new complete legislation. The 2019 invoice had proposed stringent laws on cross-border knowledge flows and proposed giving the federal government powers to hunt consumer knowledge from corporations, seen as a part of Prime Minister Narendra Modi’s stricter regulation of tech giants, and alarming huge know-how corporations resembling Facebook and Google.
On the time, Minister of State for IT minister Rajeev Chandrasekhar said on Twitter the brand new framework would adhere to world requirements, including that privateness was a elementary proper of Indian residents, and that the financial system required such cyber legal guidelines.
The 2019 privateness invoice was designed to guard residents and set up a so-called knowledge safety authority, but it surely had raised considerations amongst Massive Tech giants that it might improve their compliance burden and knowledge storage necessities.
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