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The dispute over personal data is becoming more intense – and more political. A clear signal is coming from Washington: the US government does not want to stand idly by while other countries impose stricter restrictions on how American tech companies handle user data. An internal directive to US diplomats is now causing unrest. At its core, it is a question of power: Who sets the rules in the digital space? The Heise portal reports on the development with reference to the Reuters news agency.
Washington chooses to counterattack
According to information from Reuters, US embassies worldwide have been instructed to critically monitor initiatives relating to so-called data sovereignty and to actively oppose them. This refers to national regulations that require data to be stored in the country itself or to be subject to special protection.
The internal memo states that such requirements would "disrupt global data flows, increase costs and cybersecurity risks, restrict artificial intelligence (AI) and cloud services, and expand government control in ways that could undermine civil liberties and enable censorship." Diplomats should "counteract unnecessarily burdensome regulations such as data localization requirements."
The message is clear: from Washington's perspective, overly strict data protection rules jeopardize innovation and economic momentum.
Europe's response: protection against loss of control
Rules on the protection of personal data have become significantly more important in recent years, particularly in the European Union. The General Data Protection Regulation places high demands on companies that process information belonging to EU citizens. Anyone who violates these rules risks severe penalties.
For many US technology companies, this means additional hurdles. Data cannot be transferred to other countries at will, and transparency requirements are extensive. It is precisely these requirements that are explicitly referred to in the US dispatch as "unnecessarily burdensome restrictions on data processing and requirements for cross-border data flows."
What's more, American providers are global leaders in the field of artificial intelligence. Their systems are based on huge amounts of data – including data from Europe. There is growing concern that economic dependence and a lack of control over data could lead to a strategic disadvantage in the long term.
More than just a trade conflict
The tone between the two sides is becoming more heated. Dutch cloud expert Bert Hubert sums up the change: "While the previous US administration tried to win over European customers, the current administration is asking Europeans to ignore their own data protection regulations that could hinder American companies."
In addition to data protection, other European digital laws are also coming under criticism, such as regulations against hate speech and disinformation on large platforms. In Washington, this is sometimes seen as an infringement on freedom of expression.
So it is not just a question of economic interests, but of different ideas about freedom, security, and state responsibility.
Critical commentary
Current developments show how sensitive the issue of data has become. Personal information has become the raw material of the digital economy—and thus a factor in political power. When countries begin to exert pressure on each other to protect their own companies, civil rights quickly become caught up in the conflict between strategic interests.
Data protection must not be used as a pretext to stifle innovation. But economic efficiency must not be used as an argument to weaken protection standards either. Those who reduce the debate to "progress versus bureaucracy" ignore the fact that it is about trust. And trust is the real currency of the digital world.
Source: heise.de
