"The coming trade war over data"
From Axios:
How it works: For example, China,
Russia and Vietnam require companies to store data on servers physically
located within their borders. And countries including Argentina and
Brazil restrict international data transfers under certain conditions.
The big picture:
There are currently no international rules on how data cross borders.
So a patchwork of government policies that trap data inside their
countries or prevent foreign data brokers from doing business there
could hamper the development of data-intensive technologies such as
artificial intelligence, experts say.
Where it stands:
- New digital obstacles threaten nearly $400 billion of annual U.S. exports, according to the Washington Post.
- Most
of the world's biggest data processors are based in the U.S., which
means firms like Salesforce, Microsoft, Amazon, IBM and Google have the
most on the line in these international negotiations.
Social media companies also have a lot to lose to data regulation and overseas trade barriers. Here's how many of their users are located outside of North America:
The issue becomes even more complicated and critical as
major tech companies almost exclusively store data in "clouds" that can
be located anywhere, rather than physical servers in a handful of
domestic locations.
- The biggest technology companies are
transitioning business opportunities into cloud-based software. Amazon's
Web Services business (AWS), is pushing to become the biggest
enterprise business globally.. Microsoft's Cloud business is projected
to bring in a whopping $20 billion in net revenue, per the company's
last quarterly earnings statement.
Several dynamics are shaping the way data flows internationally....
...
MUCH MORE