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<ul><li>India’s <keyword id="2617070" type="PERSON" weightage="20" keywordseo="Personal-Data-Protection-Bill">Personal Data Protection Bill</keyword>, 2019 is likely to be placed in front of Parliament sometime this month.</li><li>The underlying goal of the proposed laws is to assign rights to users over the collecting, storage and usage of their information.</li><li>However, vague language and open-ended clauses leave room for government overreach and resulting misuse.</li></ul>When it comes to data privacy it looks like users have every option available to them except for the one they want — control over their data. This includes knowing who’s collecting data, where it’s being stored, how it’s being used and what can be done if it's misused instead. There have been one too many instances where personal information, anonymised or not, has been used with bad intentions. One prominent example from recent history was <a href="https://www.businessinsider.in/tech/news/the-cambridge-analytica-whistleblower-explains-how-the-firm-used-facebook-data-to-sway-elections/articleshow/71461113.cms">Cambridge Analytica</a>’s use of data from Facebook to profile voters during the 2016 US Presidential election. With the recent increase in cyber crimes, the government of India is coming up with its own data protection laws, which officials claim is based on the European Union’s General Data Protection Regulations (GDPR). Any data that can identify an individual — either directly or indirectly — is covered under the <keyword id="4839724" type="PERSON" weightage="20" keywordseo="data-protection-bill">Data Protection Bill</keyword>, 2019. This includes names, addresses, financial information, IP addresses, cookies, device IDs and other data. Hobson’s choice that Indian internet users face The bill outlines that an organisation needs to tell an individual from before collecting or using their data. The exceptions to this are if the data is processed under law or court order, for purposes related to employment or for a ‘reasonable’ purpose specified by the Data Protection Authority (DPA) — the nodal organisation that will be looking after the entire framework. Reasonable purposes include the operation of search engines, fraud prevention, mergers and acquisitions, and credit scoring but is not limited to any prescribed scope of activity. Moreover, clause 91 of the bill allows the central government to access anonymised or non-personal data to frame policies in the internet of the ‘digital economy’. “Such provisions show that the proposed law is far more interested in treating data as a resource,” noted the Internet Freedom Foundation (<a href="https://internetfreedom.in/essential-features-of-a-rights-respecting-data-protection-law/">IFF</a>). This indicates that there is still considerable scope for a user’s data to get collected without their consent. The only difference is that instead of a private company exploiting your personal details, it will be the government with little in its way to stop overreach. Even ‘critical’ and ‘sensitive’ data — such as religion, age, gender and other personality identifiers — may be available to the government in the interest of ‘national security’. The vaguely worded clause leaves room for misuse, according to <a href="https://indianexpress.com/article/opinion/columns/personal-data-protection-bill-2019-privacy-laws-7135832/">critics</a>. User rights under the Personal Data Protection Bill: <ul><li>The right to obtain confirmation from the fiduciary on whether their personal data has been processed.*</li><li>The right to seek correction of inaccurate, incomplete, or out-of-date personal data.</li><li>The right to have personal data transferred to any other data fiduciary in certain circumstances</li><li>The right to restrict continuing disclosure of their personal data by a fiduciary, if it is no longer necessary or consent is withdrawn.</li></ul>*A data fiduciary is an entity or individual who decides the means and purpose of processing personal data. Penalties under the Data Protection Bill, 2019: <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Offence </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Penalty </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Processing or transferring personal data in violation of the Bill </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Fine of ₹15 crore of 4% of annual turnover, whichever is higher </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Failure to conduct a data audit </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Fine of ₹5 crore or 2% of annual turnover, whichever is higher </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Re-identification and processing of de-identified data without consent </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Imprisonment of up to three years, or fine, or both </td></tr></tbody></table> Authority without independence In the case of data misuse, users had to file a complaint under the Information Technology Act, the Indian Penal Code, Consumer Protection Act, Indian Contract Act or look to sectoral regulators until now. With its new set of laws, India hopes to cover all issues under the ambit of the DPA. If there is ever any breach of personal data, the organisation in-charge will have to inform the DPA. After that, however, the apex body will be in charge of deciding whether the data breach should be communicated to the affected users or direct the company to mitigate the threat. The decision making is still not in favour of the users themselves. Moverover, the independence of the DPA has also been <a href="https://thewire.in/tech/india-data-protection-authority-needs-constitutional-entrenchment">called into question</a>. The members that comprise the DPA includes a chairperson and six committee members, which will be appointed by the central government on the recommendation of a selection committee. The committee itself is formed by senior civil servants, including the Cabinet Secretary. Critics claim that the government has too much power to appoint and remove members at its discretion. This also implies a level of ability to influence the members of the DPA and the underlying committee. The Hobson’s choice in front of internet users in India is whether they’re okay with information being used by private companies to make a profit or to hand data over to the government with whom many are <a href="https://www.businessinsider.in/tech/news/what-is-facial-recognition-technology-and-how-india-is-using-it-to-track-down-protestors-and-individuals/articleshow/80782606.cms">facing a trust deficit</a>. SEE ALSO: <a href="https://www.businessinsider.in/india/news/india-is-using-the-quad-alliance-to-get-help-from-the-us-japan-and-australia-to-match-chinas-covid-19-vaccine-push/articleshow/81408044.cms">India is asking the QUAD for money to boost vaccine production and counter China’s moves on the global stage</a> <a href="https://www.businessinsider.in/stock-market/news/gold-prices-are-falling-and-the-worlds-biggest-market-for-the-yellow-metal-is-hoping-for-more-shoppers/articleshow/81406658.cms">Gold prices are falling and the world’s biggest market for the yellow metal is hoping for more shoppers</a> <a href="https://www.businessinsider.in/tech/news/india-blockchain-tech-to-make-sms-more-secure-is-leaving-users-locked-out-of-their-account/articleshow/81409145.cms">India’s blockchain tech to make SMS more secure is leaving users locked out of their accounts — and potentially more at risk</a>

India’s new data protection bill makes a good show of user rights — but can it deliver on its promises?

<ul><li>A group of associations, including the United States Chamber of Commerce, wrote to <keyword id="3658" type="COUNTRY" weightage="20" keywordseo="India">India</keyword>’s minister of Electronics and IT against the implementation of the <keyword id="2617070" type="PERSON" weightage="20" keywordseo="Personal-Data-Protection-Bill">Personal Data Protection Bill</keyword>.</li><li>They expressed that the policy may not necessarily be effective in protecting user data, but it will definitely raise the cost of conducting business in India. </li><li>Major technology players like <keyword id="6354427" type="ORGANIZATION" weightage="20" keywordseo="apple">Apple</keyword>, <keyword id="6355629" type="COMPANY" weightage="20" keywordseo="google">Google</keyword> and Uber are members of these associations.</li></ul>Adding to the pressure on India’s Personal <keyword id="187124" type="ORGANIZATION" weightage="20" keywordseo="Data-Protection">Data Protection</keyword> Bill draft, a group of associations consisting of some of the world’s largest technology companies have <a href="https://economictimes.indiatimes.com/tech/ites/industry-bodies-write-to-it-minister-ravi-shankar-prasad-against-data-bill/articleshow/66062141.cms">written a letter</a> to the country’s minister of Electronic and Information Technology. Members of the group include Apple, <keyword id="10387" type="COMPANY" weightage="20" keywordseo="Microsoft">Microsoft</keyword>, Google, Canon, and Uber, who have jointly raised concerns that while the policy may definitely raise costs by 30-60%, it may not necessarily improve <keyword id="145060" type="ORGANIZATION" weightage="20" keywordseo="data-security">data security</keyword> to such an extent. Rather than propagating no regulation, the businesses have suggested setting up legal conditions for cross-border transfers to enable the free flow of data securely without the need for <keyword id="6441632" type="UNKNOWN" weightage="20" keywordseo="Data-localisation">data localisation</keyword>. Earlier the CEO of Google, Sundar Pichai, had also written a letter to the minister emphasising the importance of the free flow of data for economic growth and digital economy. Even India’s own state, Telangana, which is home to a host of tech firms and companies in the startup space, has expressed its concern that implementation of the bill would hurt their digital ecosystem. The letter was signed by industry associations that include the United States Chamber of Commerce, the United States-India Business Council (USIBC), Japan Electronics and Information Technology Industries Association (JEITA) and DIGITAL EUROPE. Cost of business In the proposed draft bill, the government proposed setting up a legal framework to monitor and supervise the processing of personal data. In that, one of the regulations aims at obtaining specific and explicit consent from individuals. The issue come in with the clause where the stakeholders are obligated to prove specific notices indicating where and how user’s personal data is going to be processed and ensuring that this data is being handled in a way that’s error-free. Not only does this require organisations to pitch in extra resources for implementation, but it means that before implementing any new improvements within the organisation, there would be more compliances to adhere to, increasing the time required. India-based payments companies like Paytm and PhonePe take the opposite stance citing that there’s no reason to oppose the bill. (Image source: IANS)

Groups of foreign companies are lobbying against India's Personal Data Protection Bill

<ul><li>The <keyword id="6355729" type="ORGANIZATION" weightage="20" keywordseo="data">data</keyword> protection bill is one of the major bills to be a part of the winter session of the Parliament.</li><li>As per the draft bill released in 2018, global companies have to store their data locally.</li><li>It also asked businesses to seek user consent before taking their data – by explicitly citing the reasons for use. </li></ul>One of the major bills to be introduced in the winter session of the Indian Parliament is the Data protection bill. From the Cambridge Analytica <a href="https://www.businessinsider.in/tech/apps/news/facebook-data-breach-continues-more-than-a-year-after-cambridge-analytica/articleshow/71941273.cms">scandal</a> to the most recent <a href="https://www.businessinsider.in/tech/apps/news/investigating-the-whatsapp-hack-should-it-be-the-judiciary-or-the-parliament/articleshow/71933271.cms">WhatsApp data breach</a> where an Israeli company spied over the data Indians – left many worried about using platforms they otherwise use every day. In a digital first world where cyber attacks and breaches are common, this bill is a first step in answering the question -- who has access to my data? The draft bill was released in 2018 requires global companies to store their data locally. It also asked businesses to seek user consent before taking their data by explicitly citing the reasons for use. However, it also said that “the State is not required to seek the individual’s consent while providing benefits or services”. The bill has been a point of contention since it was released as corporates would have to restructure the way they work. In spite of the many pain points, experts believe that the bill is the need of the hour.. “Our research showed that 63% of Indian businesses are concerned about being exposed to cyber threats due to employee error. The bill comes at a time when data breaches have cost Indian firms dearly and IT managers having to deal with cyberattacks coming from all directions, that too with a limited budget, outdated technology and a dearth of security expertise,” said Sunil Sharma, managing director sales, Sophos India &amp; SAARC. The bill dictates that personal data that is collected must be processed only for purposes that are clear, specific and lawful - and that makes it a powerful law. “As per the new Data Security Council of India (DSCI) report, India has been the second most cyber-attacks affected country from 2016 to 2018. With this law, we hope to see that corporates will use the personal data of citizens in a responsible, fair and reasonable manner that respects the privacy of the data principal,” said Neelesh Kripalani, Sr. VP and Head – Center of Excellence (CoE), Clover Infotech. The bill also plans to levy heavy penalties for those who violate the norms. Entities which violate sensitive data are liable for a penalty of up to ₹15 crore or 4% of the total worldwide turnover, whichever is more. If non-sensitive personal data safeguard terms are violated, then the penalty will be up to ₹5 crore or 2% of the annual turnover, whichever is more. The bill also puts the user first. “Till now we needed to accept the company’s terms and conditions, where the company used to only state about the usage of the data. But with this bill now it will be mandatory for companies to explain, how the data will be processed or used by them which will make the data handling a transparent process. With this protection bill we will have full self-control of the data,” said Prathamesh Sonsurkar - Cyber security expert &amp; Ethical Hacker. Sonsurkar adds that the bill will bring transparency to the end users, and it will become difficult for the corporates to carry on with malpractices. See Also: <a href="https://www.businessinsider.in/tech/apps/news/investigating-the-whatsapp-hack-should-it-be-the-judiciary-or-the-parliament/articleshow/71933271.cms">Investigating the WhatsApp hack — Parliament probe might trump the judiciary</a> <a href="https://www.businessinsider.in/tech/apps/news/facebook-data-breach-continues-more-than-a-year-after-cambridge-analytica/articleshow/71941273.cms">Facebook data breach continues more than a year after Cambridge Analytica</a>

Personal data protection bill puts user first and has heavy penalties – cyber experts are happy about it

New Delhi, Nov 18 () The government is all set to table Personal Data Protection Bill - which proposes to put restriction on use of personal data without explicit consent of citizen - in the current session of Parliament.
As per the proposal, hefty penalties on entities found violating privacy of users will be imposed.
"The Data Protection Bill will be tabled in the current session," an IT ministry official told .
The draft of Personal Data Protection Bill, 2018 - which is based on the recommendations of the government-constituted high-level panel headed by Justice B N Srikrishna - restricts and imposes conditions on the cross-border transfer of personal data, and suggests setting up of Data Protection Authority of India to prevent any misuse of personal information.
The draft provides for a penalty of Rs 15 crore or 4 per cent of the total worldwide turnover of any data collection entity, including the state, for violation of personal data processing provisions.
"The personal data protection bill will empower an ordinary person to have command over his data. This will prohibit companies from misusing data of public which often leads to breach of privacy of individuals. An entity will have to explicitly share the purpose for which it will use data. The new rule will enable to individuals to take action against misuse of their personal data," Indian Infosec Consortium CEO Jiten Jain said.
According to the draft proposal, failure to take prompt action on a data security breach can attract up to Rs 5 crore or 2 per cent of turnover, whichever is higher, as a penalty.
"The Bill provides that right to privacy is a fundamental right and it is necessary to protect personal data as an essential facet of informational privacy," the draft said.
It allowed processing of personal data only for the purpose it is collected or for compliance of any law, employment and for any function of Parliament or any state legislature. PRS BAL

'Data Protection bill to be tabled in Parliament in current session'

The draft <keyword id="2617070" type="PERSON" weightage="20" keywordseo="Personal-Data-Protection-Bill">personal data protection bill</keyword> that seeks to empower the Centre to exempt any government agency from the provisions of the proposed legislation has the industry worried, as they warn that such exemptions represent "new, significant threats" to the privacy of Indians. The proposed bill also provides for voluntary verification of social media users and transfer of non-personal data. The outcry from industry watchers, analysts and civil society comes amid the draft bill suggesting that the Centre will be empowered to exempt any government agency from the application of the Act and verify social media users.
 One of the provisions of the draft bill states that the Centre can - in the interest of sovereignty, the security of the state, and public order - "direct that all or any of the provisions of this Act shall not apply to any agency of the Government in respect of processing of such personal data..."
 The bill, which was cleared by the Cabinet last week, is likely to be introduced in the Lok Sabha in the next couple of days.
 Mozilla's Policy Advisor Udbhav Tiwari said that if Indians are to be truly protected, it is urgent that Parliament reviews and addresses "these dangerous provisions before they become law".
 "Indians have been waiting for a strong data protection law for years now, and this latest bill delivers real privacy in regards to processing by companies and is a dramatic step backwards in terms of processing and surveillance by the government. Exceptions for government use of data, the verification of social media users, and the forced transfer of non-personal data all represent new, significant threats to Indians' privacy," said Tiwari.
 Mozilla is the not for profit entity behind the web browser Firefox.
 While the bill seeks to protect personal and sensitive data of individuals, it proposes to allow processing of private data without explicit consent in case of security, credit scores, debt recovery, operation of search engines and whistle blowing.
 The draft bill also states that the central government can frame policy for the digital economy with respect to non-personal data. In particular, it can direct any data processor to "provide any personal data anonymised or other non-personal data to enable better targeting of delivery of services or formulation of evidence-based policies by the Central Government".
 Further, social media entities with user base above a certain threshold and whose "actions have, or are likely to have a significant impact on electoral democracy, security of the State, public order or the sovereignty and integrity of India," will be notified as 'significant data fiduciary'.
 Every social media intermediary classified as a 'significant data fiduciary' will enable the users in India to voluntarily verify their accounts. Any user undergoing such voluntarily verification will have to be provided with a mark of verification that is visible to all users of the service. Such entities will also have to get their policies and conduct (of data processing) audited by an independent data auditor.
 Jaspreet Singh, Cyber Security Leader, EY India said termed the Bill a "double-sided sword".
 Singh said that while it protects the personal data of Indians by empowering them with data principal rights, "it bestows the central government with exemptions which are against principles of processing".
 "The State can process even sensitive personal data when required, without an explicit consent from the data principals. However, the government will need to show that any processing of personal data is necessary and processing of sensitive personal data is strictly necessary for the exercise of any function of the State authorised by law for the provision of service or benefit," Singh said.
 These broadly-worded carve-outs "can be misused and hence need to be carefully examined", he cautioned.
 Arun Prabhu, Partner at Cyril Amarchand Mangaldas noted that portions of the bill have been pared down, and some changes such as the lack of a clear implementation timeline, requirement to share non personal data, obligations for social media verification "may be a potential source of concern."
 He, however, said that certain changes made to the Draft Bill are business friendly, providing for increased certainty, a regulatory sandbox for Artificial Intelligence/Machine Learning and other innovative technology, limiting localisation to non-sensitive data and a potential carve out for non-Indian data processed under contract.
 Gartner said that the primary concern will be the execution of the bill across which will include advisory from regulatory bodies such as RBI, IRDAI, SEBI.
 "There must to very clear guidelines which the enterprises can easily follow without relying completely on consulting service providers. Very clear deadlines must be mentioned and clarity on the fines in case of violation must be clearly mentioned and should be available on public website," Rajpreet Kaur, Principal Analyst of Gartner said. SR MBI MR

India's proposed data laws won't apply to the government — businesses cry foul

The upcoming Digital Personal Data Protection <keyword id="19032" type="General" weightage="100" keywordseo="bill" source="Orion">Bill</keyword> will drive "deep behavioural changes" among those platforms in <keyword id="3658" type="General" weightage="50" keywordseo="india" source="Orion">India</keyword> that have for long exploited or misused personal data, <keyword id="6357801" type="General" weightage="50" keywordseo="union" source="Orion">Union</keyword> minister <keyword id="205969" type="General" weightage="50" keywordseo="rajeev-chandrasekhar" source="Orion">Rajeev Chandrasekhar</keyword> has asserted. In an interview to PTI, the minister of state for IT and electronics also sought to allay concerns around the issue of government-appointed fact check body, saying the move is not about censorship at all, rather it gives the Centre an opportunity to clarify and respond to any <keyword id="535763" type="General" weightage="80" keywordseo="misinformation" source="Orion">misinformation</keyword> related to it, something that is critical in a democracy. Misinformation, he said, is not to be confused with right to free speech. The minister noted that misinformation tends to travel 10-15 times faster, and reaches an audience 20-50 times more, than truth. He emphasised that it is absolutely critical that in a democracy if someone says something false about the government, to create hatred, to incite violence, or to just create mistrust, "the government must have an opportunity to say no, this is not true". "So there is no censorship, there no restriction on free speech. This is simply about saying what is patently false, is patently false. And that is certainly not to be confused or deliberately distorted to imply that this is a crackdown on free speech," Chandrasekhar said. The minister's comment assumes significance as the decision to notify an entity that will flag false information posted online pertaining to the government has raised concerns in some quarters on whether it gives government absolute powers. "I think there is some misunderstanding about what it is we are trying to do," the minister said when asked about the issue. "Misinformation is expressly an area that has already been prescribed in the rules as an area that platforms have to do significant work in moderating misinformation if they are to enjoy Section 79 protection. It is already mandated in the rules of October 2022," he said. Rather, the fact check unit aims to help platforms in identifying false content posted about the government. "It is not an opinion. It is not about saying that we will create another narrative about the government," Chandrasekhar added. On the digital personal data protection (DPDP) bill, which will be introduced in the coming session of <keyword id="6354721" type="General" weightage="50" keywordseo="parliament" source="Orion">Parliament</keyword>, the minister said the draft legislation has undergone a lot of consultation and is designed as "a truly world class piece of legislation". "I have absolutely no doubt that the DPDP Bill will create deep behavioural changes among platforms in India who have for long exploited and misused personal data," the minister said. At the same time, those who have played fair will not get affected, and will continue to do the right thing, he observed. "Those who have done it (misused data), tracked consumers, used cookies they certainly will have to go though deep behavioural change... Those who are already doing it right, have nothing to fear. But those who have, in a sense, lived off this model of exploitation will certainly have to reconsider," minister said. He expressed hope that the bill will come up in the Monsoon session of Parliament. The draft bill - which has seen an overhaul after its withdrawal in August last year - details the citizen's rights on personal data, with provisions that makes entities handling personal data accountable for managing it with safety and security in a responsible manner. "The purpose of this bill is to provide for the processing of digital personal data in a manner that recognises the right of individuals to protect their personal data, the need to process personal data for lawful purposes and for other incidental purposes," an explanatory note of the draft bill said. The proposed data protection legislation allows the transfer and storage of personal data in some countries while raising the penalty for violations. The proposed legislation stipulates consent before collecting personal data and provides for stiff penalties of as much as Rs 500 crore on persons and companies that fail to prevent data breaches including accidental disclosures, sharing, altering or destroying personal data. On being asked about Meta being fined a record-breaking USD 1.3 billion recently by European Union regulators for violating EU privacy laws, and whether India too can look at large financial deterrants for Big Tech for non-compliance of laws, the Minister said idea is not about competing with the EU on size of penalties. "I don't think we are in the business of competing with the EU in terms of the size of the penalty, but the formulation of penalties in this Bill is sufficient to incentivise every data fiduciary or any platform to behave correctly, to follow the law, and do the right thing," he said. The days when platform could exploit the data of consumers is fast coming to an end, he said, adding there are many powers under the bill that have been given to the Indian consumer to interrogate, search, check what data the platforms have. "...and I think certainly it's a balance of protecting the consumer rights, as well as continuing to allow innovation and investments," the minister said. On WhatsApp spam call issue, Chandrasekhar said that the government has called out to WhatsApp and other messenger companies about the problem and emphasised that it is unacceptable. "They have responded with alacrity and responded very quickly. They are searching out many solutions. We have also asked them to give to us what are the overseas telecom carriers from where these originate, so that we can talk to BSNL, and to our own <keyword id="150664" type="General" weightage="50" keywordseo="telecom-department" source="Orion">Telecom Department</keyword> to make sure that these carriers are also warned that there is unlawful activities originating from their networks, and that if that continues, we may have to look at some kind of a discussion of whether those networks will be allowed to terminate in India as well," he said. The government and players are not adversaries, rather they work in partnership, he said, adding that a safe and trusted internet for 1.2 billion consumers "is good for business, government, and for citizens". 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Data protection bill to drive deep behavioural changes for platforms exploiting data: Chandrasekhar

<ul><li><keyword id="164502" type="PERSON" weightage="20" keywordseo="Sundar-Pichai">Sundar Pichai</keyword>, the CEO of <keyword id="6355629" type="COMPANY" weightage="20" keywordseo="google">Google</keyword>, wrote a letter to the government of India to highlight the importance of data sharing. </li><li>In his opinion, the free flow of data would help the Indian digital economy grow as well as assist the startups. </li><li>It’s a tall order at a time when most nations are implementing protectionist data policies</li></ul>What seems to be a response to the draft bill on the Data Protection Law, the CEO of Google wrote a letter to the Indian government emphasizing the importance of the free flow of data across borders. Sundar Pichai added that the free flow of data is a win-win situation for all stakeholders since it will help global tech companies assist the domestic digital economy as well as Indian startups grow. His letter indicated that the <keyword id="45395" type="CITY" weightage="20" keywordseo="Google-India">Google India</keyword> team would follow up with the government to discuss some of these issues in order to reach a consensus. At a time when most countries around the world are employing protectionist policies across the board, digitally and economically, this is a big ask of Pichai. It’s important to look at the pros and cons of being liberal with user data. <keyword id="6867307" type="UNKNOWN" weightage="20" keywordseo="data-protectionism">Data protectionism</keyword> One of the main concerns of data protectionism is that excessivr regulation can create <a href="https://hbr.org/2018/08/the-dangers-of-digital-protectionism">data islands.</a> Basically, the digital economy would get divided into pockets and there would be an uneven distribution of benefits such as global supply chains or access to information. In fact, experts speculate that there actually three data realms that are being created. Namely the US, the EU and China. With India, the concern is specifically that the <keyword id="2617070" type="PERSON" weightage="20" keywordseo="Personal-Data-Protection-Bill">Personal Data Protection Bill</keyword> will hamper the growth of the digital payments sector that’s currently booming at 30% per year. As per the Global Commission of <keyword id="1062334" type="PERSON" weightage="20" keywordseo="internet-governance">Internet Governance</keyword>, the restrictions on data in the EU <a href="https://www.cigionline.org/publications/tracing-economic-impact-regulations-free-flow-data-and-data-localization">costs</a> them 0.5% of their GDP. Even China, home to startups like Alibaba and Tencent, may face a loss of 1.8-3.4% in its GDP if it localises its data any further <a href="https://www.uschamber.com/sites/default/files/documents/files/preventing_deglobalization_1.pdf">according</a> to the US Chamber of Commerce. In addition to the loss of productivity to the economy, there is also a cost. As the amount of data that can potentially be shared increases, as it inevitably will, the cost of blocking or protecting it will increase alongside. The cost will not only be borne by the government, in terms of surveillance, but also by the companies who will continually have to add new data centers in each country. Data localisation measures also lead to a decrease in efficiency as data chains will be divided into smaller fragments. Sachin Bansal, the co-founder of Flipkart, <a href="https://tech.economictimes.indiatimes.com/news/internet/indias-data-policy-should-factor-in-local-problems-not-mimic-west-sachin-bansal/65443337">stated</a> that the <keyword id="1127619" type="PERSON" weightage="20" keywordseo="data-protection-laws">data protection laws</keyword> in India need to be in line with the requirements of the local economy instead of mimicking what the west has implemented. That being said, the Indian Finance Ministry has proposed to adopt a ‘mirroring’ approach. Essentially multinational companies would still be allowed to aggregate global data provided that a copy data that specifically pertains to Indian citizens, is stored locally as well. Experts argue that, ideally, that the developed economies should lead the conversation on a global scale rather than leave the field open to China, but the stark absence of leadership didn’t leave much of a choice. Putting the free flow of data in the context of laissez faire, the digital economy would definitely benefit from the complete absence of government intervention. But, it would come at a cost. As it is with the concept of free trade in economics, business could engage in risky behaviours that could lead to bigger problems down the road.

Here’s what Sundar Pichai had to say to the Indian government

Microblogging site <keyword id="6354616" type="UNKNOWN" weightage="20" keywordseo="Twitter">Twitter</keyword>'s explanations to a parliamentary panel on showing <keyword id="26604" type="PERSON" weightage="20" keywordseo="ladakh">Ladakh</keyword> as part of China are inadequate and the act amounts to criminal offence attracting imprisonment of seven years, committee chairman Meenakshi Lekhi said on Wednesday. <div type="Article" hostid="261" msid="78805315" title="Twitter CEO is facing fire from India after a map showed Jammu and Kashmir as part of China" mstype="2" mssubtype="0"></div> Representatives of Twitter appeared before the joint committee of parliament on <keyword id="4839724" type="PERSON" weightage="20" keywordseo="data-protection-bill">Data Protection Bill</keyword>, 2019 and were questioned by the members on showing Ladakh as part of China, Lekhi said. "The committee was unanimous in its opinion that Twitter's explanation on showing Ladakh as part of China was inadequate," Lekhi told . However, representatives of Twitter told the panel that the social media company respects the sensitivities of India, she said. "It is not a question of sensitivities only, it is a matter of India's sovereignty and integrity, showing Ladakh as part of China amounts to criminal offence which attracts imprisonment of seven years," Lekhi said. Officials who deposed before the panel on behalf of <keyword id="749437" type="COMPANY" weightage="20" keywordseo="Twitter-India">Twitter India</keyword> included Shagufta Kamran, senior manager, public policy, Ayushi Kapoor, legal counsel, Pallavi Walia, policy communications, and Manvinder Bali, corporate security. Officials from the Ministry of Electronics, Information and Technology, and Ministry of Law and Justice also deposed before the panel. SEE ALSO: <a href="https://www.businessinsider.in/science/space/news/building-blocks-of-life-discovered-in-titans-atmosphere-nasa-discovers-a-weird-molecule-on-saturns-largest-moon/articleshow/78909286.cms">Building blocks of life discovered in Titan’s atmosphere — NASA discovers a ‘weird’ molecule on Saturn’s largest moon</a> <a href="https://www.businessinsider.in/finance/banks/news/ajay-piramal-believes-that-if-banks-wont-lend-to-long-term-projects-india-will-need-to-revive-the-likes-of-idbi-and-ifci/articleshow/78906135.cms">EXCLUSIVE: Ajay Piramal believes that if banks won't lend to long-term projects, India will need to revive the likes of IDBI and IFCI</a> <a href="https://www.businessinsider.in/science/space/news/apophis-the-god-of-chaos-asteroid-is-speeding-up-increasing-the-likelihood-of-it-hitting-earth-in-2068/articleshow/78895818.cms">Apophis, the ‘God of Chaos’ asteroid is speeding up — increasing the likelihood of it hitting Earth in 2068</a>

Twitter's explanation on showing Ladakh as part of China deemed inadequate by India

<ul><li><keyword id="196608" type="PERSON" weightage="20" keywordseo="Wikimedia">Wikimedia</keyword>, which aims to provide access to free knowledge and information, has several problems with the bill.</li><li>It outlines issues with the setting up of a local India entity, filtering of content among other things.</li><li><keyword id="71187" type="COMPANY" weightage="20" keywordseo="Wikipedia">Wikipedia</keyword>, which allows users to create content online easily is also worried that the bill’s traceability requirements will pose as “a serious threat to freedom of expression”.</li></ul>Wikimedia, the non-profit group that runs Wikipedia, is worried about India’s new data protection law. It has <a href="https://wikimediafoundation.org/news/2019/12/26/indias-proposed-intermediary-liability-rules-could-limit-everyones-access-to-information-online/">written</a> to Indian IT Minister Ravi Shankar Prasad about its concerns. Wikimedia, which aims to provide access to free knowledge and information, has a problem with the law which will force it to set up a local entity. Also, it will be subjected to filtering of content among other things. “Yet, even with such an approach we remain concerned about requirements which encourage or necessitate automated filtering of user uploads, either explicitly or implicitly through short take-down times and could severely disrupt the availability and reliability of Wikipedia,” Amanda Keaton, general counsel, <keyword id="196610" type="ORGANIZATION" weightage="20" keywordseo="Wikimedia-Foundation">Wikimedia Foundation</keyword>. The organization had made its voice heard while the law was drafted, but remains disappointed that no action has been taken so far. “We trust the Ministry has taken the valid concerns that we and many others have raised into account when revising the draft rules. We encourage the Ministry to release the current draft and make sure there is a robust and informed debate about how the internet should be governed in India,” wrote Keaton. The <keyword id="4839724" type="PERSON" weightage="20" keywordseo="data-protection-bill">Data Protection Bill</keyword> requires companies to set up local data entities in India – which is an ‘unrealistic burden’. “While it may be possible for larger companies to comply with local incorporation rules, it would be an unrealistic burden for a global nonprofit with limited resources to comply with local incorporation requirements,” Keaton wrote in the letter. Wikipedia, which allows users to create content online easily is also worried that the bill’s traceability requirements will pose as “a serious threat to freedom of expression”. India is one of Wikipedia’s leadership markets. In November, Indians visited Wikipedia over 771 million times which is its fifth highest number of views. The Data Protection Bill was introduced in the Lok Sabha during the winter session of the parliament. SEE ALSO <a href="https://www.businessinsider.in/india/news/personal-data-protection-bill-will-be-discussed-in-parliament-here-is-what-cyber-experts-have-to-say/articleshow/72153785.cms">Personal data protection bill puts user first and has heavy penalties – cyber experts are happy about it</a> <a href="https://www.businessinsider.in/tech/news/biggest-data-breaches-of-2019-to-affect-india/articleshow/72465865.cms">Biggest data leaks of 2019 that hit Indians</a>

Here’s why Wikipedia is threatened by India's internet intermediary liability rules

<ul><li>The Indian government has been a strong propagator of <keyword id="6441632" type="UNKNOWN" weightage="20" keywordseo="Data-localisation">data localisation</keyword> stating that it will improve the security and privacy of data. </li><li>A report by ICRIER and IAMAI finds that data localisation is inconsequential to privacy and will weaken fraud detection. </li><li>It also states that the growth and competitiveness of local firms, especially start-ups and small businesses, will be hampered by data localisation. </li></ul>The Internet is getting faster, more people are coming online, data consumption is higher than ever — but so are the amount of <a href="https://www.businessinsider.in/tech/news/oneplus-data-breach-and-how-to-protect-yourself-against-phishing-emails/articleshow/72242175.cms">data breaches</a>. Financial data in India is <a href="https://www.businessinsider.in/whatsapp-gives-in-to-indias-data-localisation-policy/articleshow/66135946.cms">already localised</a> but the government is looking to bring all data under the new regime with the <a href="https://www.businessinsider.in/apple-microsoft-aws-adobe-akamai-and-ibm-want-discussion-on-personal-data-protection-bill-before-parliament/articleshow/69768390.cms">Personal Data Protection Bill 2019</a>. Their argument is that is will make data more secure if it's stored in Indian servers. India's most vocal propagator of data localisation, Mukesh Ambani — the richest man in the country — also believes Indian data should stay in India since '<a href="https://www.businessinsider.in/data-is-the-new-oil-and-indians-shouldnt-have-scarcity-of-it-says-mukesh-ambani/articleshow/57167743.cms">data is the new oil</a>'. Vijay Shekhar Sharma, founder of the payments service PayTM, proposes that data should be 'stringently domiciled'. However, this may not necessarily be the solution to privacy woes, according to a report by ICRIER and IAMAI on the economic implications of cross-border data flows. Not only will data localisation weaken fraud detection but it could also end up costing India $43 billion in trade. It will also be more costly — not just for global firms but local firms as well. As data localisation turns into an entry barrier, it could result in global retaliation and reduced competitiveness. One place, one target, one hit Just because data is stored all in one place, doesn't make it more secure. In fact, like most bank heist movies will tell you, it makes the target easier to hit. This is not only because all of it will be in one place but because most mature financial services companies use integrate global architectures to manage their data — the localisation of data would impair their functionality. According to the ICRIER-IAMAI report, the weakening of fraud detection systems would likely lead to a ten-fold increase in fraud losses in India. "The costs of maintaining and upgrading these systems, unique to each company, will be recurrent and significant," noted the report. It also added, "The location of data is inconsequential to improving privacy outcomes." Data localisation isn't so good for the locals either The digital services market is highly competitive. In order to stay in the running, companies — Indian and otherwise — have to keep their costs as low as possible. With globalisation and the nature of cloud services, companies can store their data wherever they get the best price — even if that's offshore. But this will no longer be the case if data localisation is made mandatory. Not only will this make things more expensive for digital firms, but customers may also have to bear the brunt of higher prices, according to the ICRIER-IAMAI report. In the short run, it is costing small and medium enterprises (SMEs) to migrate to local servers. Indian data centers might not always have the latest features and updates either. That is another long-term pain point. SMEs have also reported that forcing the development of data centers locally won't only increase the direct cost for businesses but also increase indirect costs — like paying for the power supply. Localisation isn't that good for the customers either Data localisation will mean that it will be harder for foreign countries to enter the Indian market — a barrier to entry. With fewer companies populating the market, competitiveness will take a hit. That means two things — one, the quality of products and the level of innovation will reduce and two, prices are likely to increase. According to the report, companies also fear global retaliation if India is too stringent with its localisation measures — such as higher customs and export restrictions. This will, again, increase the cost of products in the country. It's not that India shouldn't implement data location but 'data' shouldn't be used as a blanket term. Softening the localisation measures to critical or sensitive datasets would minimise the opportunity costs. If India keeps its data borders open, it will increase its total volume of goods trade by an estimated $43 billion annually as cross border data flows increase. Over the past year, India's total Internet bandwidth increased by 35% resulting in $24 billion in trade. See also: <a href="https://www.businessinsider.in/india-personal-data-protection-bill-global-ceo-concerns/articleshow/68389336.cms">Here’s what global tech CEOs have to say about India's data protection laws</a> <a href="https://www.businessinsider.in/policy/news/an-indian-lobby-with-the-likes-of-facebook-flipkart-and-microsoft-as-members-is-still-arguing-against-storing-data-in-india/articleshow/71472585.cms">An Indian lobby with the likes of Facebook, Flipkart, and Microsoft as members is still arguing against storing data in India</a> <a href="https://www.businessinsider.in/data-protection-for-indian-businesses-inadequate/articleshow/68613117.cms">Indian companies know how to sell data but not how to protect it</a>

Data localisation won't help 'local' firms or improve privacy — but it could cost India $43 billion

In step to protect data and <keyword id="1491669" type="PERSON" weightage="20" keywordseo="User-privacy">user privacy</keyword>, the government-appointed panel presented their <a href="http://meity.gov.in/writereaddata/files/Personal_Data_Protection_Bill%2C2018_0.pdf">Personal Data Protection Bill</a> to the Indian government on Friday. The bill was accompanied by a report titled, ‘Á Free and Fair Digital Economy: Protecting Privacy, Empowering Indians’. There’s been much ado about its impact on the digital Indian economy. And the fact of the matter is, that the Srikrishna committee’s proposal is essentially a diluted version of the General Data Protection Regulation (<keyword id="2556126" type="PERSON" weightage="20" keywordseo="GDPR">GDPR</keyword>). That may not be the best news for users in terms of privacy and its implementation, but if firms have already started to become GDPR compliant then then Data Protection Bill shouldn’t require many changes for to adhere to, at least for Indian firms. Even international companies, which deal with the data of European users, have already separated how they deal with data coming in from the EU. The guidelines for the restrictions on the volume of data collected, how it is stored, the purpose of data collection, limitation on the use of personal data and notifications for data breaches are all subsets of what has already been put forth by the GDPR. 
 
 <div type="image" title="GDPR and India's Data Protection Bill Overlap" msid="65198889" hostid="261"></div>





 The cost of compliance is the major hurdle that firms, especially startups, will have to overcome. But, experts <a href="https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/big-bill-for-data-privacy-may-cost-startups-dear/articleshow/65191607.cms">point out</a> that provided a Privacy Impact Assessment (PIA) is carried out to analyse how data moves in and out of the organisation, future compliance costs can be avoided. However, the PIA in itself is an added cost. Currently, privacy policies are generic, shorter in length and not available in local languages. The bill has put forward penalties ranging from ₹5-15 crores depending on the severity of non-compliance.

GDPR compliant firms should find it easy to adhere to draft Personal Data Protection Bill in India

<ul><li>Global tech giants like Apple, Microsoft, and Abode feel that there should be another round of discussions before India’s <keyword id="2617070" type="PERSON" weightage="20" keywordseo="Personal-Data-Protection-Bill">Personal Data Protection Bill</keyword> is brought to Parliament. </li><li>Ravi Shankar Prasad, India’s IT minister, on the other hand, wants the Personal Data Protection to be tabled in Parliament as soon as possible.</li><li>Global tech companies with the BSA, the software alliance, say another round of consultations will help account for the bill’s many changes and learn from the GDPR as it completes its first year.</li></ul> The Indian government is pushing for a Personal Data Protection Bill in the parliament as soon as possible but <a href="https://www.businessinsider.in/india-personal-data-protection-bill-global-ceo-concerns/articleshow/68389336.cms">global tech giants</a> want another round of consultation before the bill’s implementation. “Given how the privacy discourse and policy discourse has happened in the last year and also technology has rapidly change. We urge the government to undertake further consultation before they introduce it into the parliament,” Venkatesh Krishnamoorthy, the Country Manager for <keyword id="1681687" type="ORGANIZATION" weightage="20" keywordseo="BSA-India">BSA India</keyword> told Business Insider India. BSA, the software alliance that includes companies like Microsoft, Amazon Web Services (AWS), Intel, Adobe, Akamai, Oracle, IBM and Apple, feel that since the policy that will now be tabled is considerably different from what was originally presented for discussion — another round of inputs would help the companies as well as the Indian government. Rushing to parliament Ravi Shankar Prasad, India’s IT and telecom minister, told the press that taking the Personal Data Protection Bill to parliament will be one of his top priorities during the first 100 days of Prime Minister Narendra Modi’s second term. “In IT, we will try to quickly get the data protection bill to the Parliament and also, notifying the intermediary guidelines,” he said. Before India started out on its journey to address data privacy concerns, the debate had already been ongoing in the US for nearly 20 years and in the EU for over 10 years. The original draft of the Personal Data Protection Bill that was shared in 2018 draws its inspiration from the European Union’s General Data Protection Regulation (GDPR) as well as other legislations around the world. And, given that GDPR has just completed its first year of implementation, Krishnamoorthy feels that there’s a lot that India can learn from the EU’s experience, “It would be beneficial for the government given that GDPR has gone through its anniversary and there were learnings from that. And generally, also there’s been a lot of activity as well, like the G20 Summit in Japan. ” It’s not just that India needs to look at the experience of other countries. The new draft that will be tabled at parliament is considerably different from what was originally presented. “The next version be more robust than what it is currently,” Krishnamoorthy explains. He adds, “It’s a step in the right direction because the time of privacy legislation has come. It’s been a pretty thorough effort trying to come with a comprehensive data protection legislation on the government’s part.” There were <a href="https://www.businessinsider.in/groups-of-foreign-companies-are-lobbying-against-indias-personal-data-protection-bill/articleshow/66070718.cms">many concerns</a> in the first bill with respect to the definitions of data and the mandate of data localisation. BSA is hoping that the final version will have rules that are horizontally applicable. See also: <a href="https://www.businessinsider.in/india-personal-data-protection-bill-global-ceo-concerns/articleshow/68389336.cms">Here’s what global tech CEOs have to say about India's data protection laws</a> <a href="https://www.businessinsider.in/groups-of-foreign-companies-are-lobbying-against-indias-personal-data-protection-bill/articleshow/66070718.cms">Groups of foreign companies are lobbying against India's Personal Data Protection Bill</a> <a href="https://www.businessinsider.in/data-protection-for-indian-businesses-inadequate/articleshow/68613117.cms">Indian companies know how to sell data but not how to protect it</a>

You Searched For "data protection bill" and got 12 results

India’s new data protection bill makes a good show of user rights — but can it deliver on its promises?

Prabhjote Gill

Groups of foreign companies are lobbying against India's Personal Data Protection Bill

Prabhjote Gill

Personal data protection bill puts user first and has heavy penalties – cyber experts are happy about it

Sanchita Dash

'Data Protection bill to be tabled in Parliament in current session'

PTI

India's proposed data laws won't apply to the government — businesses cry foul

PTI

Data protection bill to drive deep behavioural changes for platforms exploiting data: Chandrasekhar

PTI

Here’s what Sundar Pichai had to say to the Indian government

Prabhjote Gill

Twitter's explanation on showing Ladakh as part of China deemed inadequate by India

PTI

Here’s why Wikipedia is threatened by India's internet intermediary liability rules

Sanchita Dash

Data localisation won't help 'local' firms or improve privacy — but it could cost India $43 billion

Prabhjote Gill

GDPR compliant firms should find it easy to adhere to draft Personal Data Protection Bill in India

Prabhjote Gill

Apple, Amazon, and Microsoft want one more shot at convincing India before data protection bill reaches Parliament

Prabhjote Gill

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