The authorities on Friday proposed a brand new knowledge privateness legislation that may permit firms to switch customers’ private knowledge to sure international locations overseas, the newest regulation that may have an effect on how tech giants comparable to Facebook and Google function available in the market. The draft invoice comes after the federal government in August withdrew a 2019 proposal that had alarmed massive know-how firms by proposing stringent rules on cross-border knowledge flows.

In the brand new draft launched on Friday, the federal government mentioned it might specify international locations or territories outdoors India to which entities managing knowledge can switch private knowledge of customers.

“Cross-border interactions are a defining characteristic of today’s interconnected world … Personal data may be transferred to certain notified countries and territories,” the federal government mentioned in a press release.

The Digital Personal Data Protection Bill is open for public session, IT Minister Ashwini Vaishnaw said on Twitter, with out giving a deadline.

Companies together with Facebook, Twitter and Google have for years been involved with many know-how sector rules in India, which have additionally strained relations with the United States in recent times.

The new invoice additionally proposes monetary penalties on firms for incident associated to knowledge breaches. It additionally says the federal government would have powers to exempt state businesses from provisions of the invoice within the curiosity of nationwide safety.

Back in August, the federal government withdrew the Personal Data Protection Bill, asserting it was engaged on a brand new complete legislation. The 2019 invoice had proposed stringent rules on cross-border knowledge flows and proposed giving the federal government powers to hunt person knowledge from firms, seen as a part of Prime Minister Narendra Modi’s stricter regulation of tech giants, and alarming massive know-how firms comparable to Facebook and Google.

At the time, Minister of State for IT minister Rajeev Chandrasekhar mentioned on Twitter the brand new framework would adhere to world requirements, including that privateness was a elementary proper of Indian residents, and that the economic system required such cyber legal guidelines.

The 2019 privateness invoice was designed to guard residents and set up a so-called knowledge safety authority, nevertheless it had raised issues amongst Big Tech giants that it might enhance their compliance burden and knowledge storage necessities.

© Thomson Reuters 2022