India’s largest telecommunication companies Reliance Jio and Bharti Airtel as well as digital payments major Paytm are opposing the Centre’s move to allow transfer of personal data of Indians to ‘trusted geographies’. This is as per a report by the Economic Times.
They are asking for data of Indians to be stored within the country in a stance contrary to that adopted by the industry’s nodal grouping, Internet and Mobile Association of India (IAMAI).
Jio, Airtel and Paytm have officially communicated their position on the matter to the ministry of electronics and information technology (MeitY) through a submission routed via IAMAI. All three companies are also members of the industry body. While the industry association is backing the government’s position, some of the companies are not, “Jio is strongly opposed to any form of cross-border transfer of personal data of Indians”.
Instead, “it wants the government to mandate that personal data of Indians must reside in the country itself”, the person added. The latest draft of The Digital Personal Data Protection Bill, 2022 has mooted a concept of “trusted geographies” where the government will prescribe a country or territory to a “whitelist”. Personal data may be transferred from India to these countries.
The Indian internet industry has largely welcomed the government’s revised stance on allowing cross-border data flow while doing away with hard data localisation mandated in the previous versions of the data bill.
However, the telecom majors contend that any transfer of data will mean India’s law enforcement agencies will face big challenges in accessing data of Indian citizens “once it is processed by an overseas telco or a tech company based in a foreign country”, said the report.
Cross-border personal data transfers could potentially leave Indians in a vulnerable position, especially if their personal data gets compromised or misused overseas, sources said. “The possibility of the impacted Indian individual having any form of legal recourse mechanism to fight such misuse in a foreign country will be remote,” one of them said while adding that “Indian law enforcement agencies may be unable to help as they are unlikely to have real-time access to the private data of Indian citizens once it is transferred outside the country.”
The Indian companies want the Centre to ensure that rights of Indian users are equally enforceable, and that local law enforcement agencies have access to Indian user data processed in a third country, “before whitelisting any foreign countries”.
“Equally, foreign law enforcement agencies should have no access to data of Indian users being processed in their countries,” said the person cited above. Further, Indian companies would be unwilling to invest in expensive data centres locally if the government allows cross-border data transfers. “There would be no business case to build state-of-the-art digital storage infrastructure in such a situation and existing investments will also go waste,” said a source aware of Jio’s thinking on the matter. Airtel too has similar concerns against cross-border transfer of data of Indians, according to the sources. They pointed out that any move by the government to allow cross-border transfer of personal data of Indians could put on hold billions of dollars of potential investments in state-of-the-art data centres and in building India’s digital infrastructure. The last date for public consultation on this draft data bill was January 2023.
In its submission, IAMAI stated, “Our members, Airtel, Paytm and Reliance Jio have divergent views to those expressed in this (cross-border data transfer) Section.