Data flows are important for the economy

Cross-border data flows have grown sharply, particularly as digital providers seek to tailor their services more to the individual. The enforced localisation of data disrupts this, even within the EU, and is costly for European economies.

There are important privacy and security reasons for regulating cross-border data flows. But there are also circumstances where policymakers, in Europe and beyond, are exploiting this for protectionist motives, which is damaging for businesses and consumers.

Source: ECIPE; Eurostat, own calculations