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"Countries are competing to be the Cayman Islands of data privacy," says Daniel Castro, a senior analyst at the Information Technology and Innovation Foundation, a nonpartisan Washington, D.C., think tank that receives funding from the tech industry.
While establishing these islands of privacy might make for good marketing, the initiatives face hurdles. Laws demanding that data be stored in-country can give domestic Internet-service providers a boost but also could raise their customers' costs.
And creating domestic walls for online service runs into a hard reality.
"It basically ignores the entire Internet," says Ronaldo Lemos, director of the Institute for Technology & Society, a Rio de Janeiro think tank. "This data has to circulate. It's going to be sent to Miami, to Europe. It's not going to be sitting idle."
Nevertheless, some European leaders are renewing calls for a "euro cloud," in which consumer data could be shared within Europe but not outside the region. Brazil is fast-tracking a vote on a once-dormant bill that could require that data about Brazilians be stored on servers in the country. And India plans to ban government employees from using email services from Google and Yahoo. Full story...
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"Countries are competing to be the Cayman Islands of data privacy," says Daniel Castro, a senior analyst at the Information Technology and Innovation Foundation, a nonpartisan Washington, D.C., think tank that receives funding from the tech industry.
While establishing these islands of privacy might make for good marketing, the initiatives face hurdles. Laws demanding that data be stored in-country can give domestic Internet-service providers a boost but also could raise their customers' costs.
And creating domestic walls for online service runs into a hard reality.
"It basically ignores the entire Internet," says Ronaldo Lemos, director of the Institute for Technology & Society, a Rio de Janeiro think tank. "This data has to circulate. It's going to be sent to Miami, to Europe. It's not going to be sitting idle."
Nevertheless, some European leaders are renewing calls for a "euro cloud," in which consumer data could be shared within Europe but not outside the region. Brazil is fast-tracking a vote on a once-dormant bill that could require that data about Brazilians be stored on servers in the country. And India plans to ban government employees from using email services from Google and Yahoo. Full story...
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