Czech Business Today

At the beginning of the year, the European Commission presented its Communication on Building a European Data Economy, which was accompanied by the Staff Working Document on the free flow of data and emerging issues of the European data economy.

The document focused on restrictions that prevent free flow of data both in the EU and outside of it, transfer and access to non- personal machine-generated data, portability of data etc. At the end of March, the Permanent Representation of the Czech Republic to the EU hosted an event called Data flows: heartbeat of the digital single market that brought together representatives of member states, European institutions, business organizations and other stakeholders to discuss this key topic for creating a truly digital single market in the EU.

According to the European Commission’s representative Pearse O’Donohue, forced data localization on the single market is one of the biggest obstacles to a digital single market. If the EU manages to remove it, it would mean reduction of costs for companies up to 8 billion euro per year. Czech businesses were represented at the event by Milena Jabůrková, Member of Board of the Confederation of Industry of the Czech Republic. According to her, it is necessary to create a legal framework in the EU that would prevent creating new data localization restrictions and other obstacles to free ow of data. It is the key condition for creating single digital market in the EU. To achieve this, individual member states must refuse protectionist sentiments often hidden behind the idea of protection of personal data. Furthermore, she added that free movement of data should be considered the fifth freedom of the EU.

As mentioned by the Czech MEP Dita Charanzová, data flows restrictions must be removed also vis-à-vis third countries. According to her, all the free trade agreements of the EU should have separate chapters focused on digital issues, including free flow of data.