Directorate for Science, Technology and Innovation
Data localisation trends and challenges
Considerations for the review of the Privacy Guidelines
This report highlights a complex situation in which some forms of data localisation
are seen as useful and largely uncontroversial, while others as a significant barrier
to the digital economy. Contributing to the review of the implementation of the OECD
Privacy Guidelines, the report emphasises the need to recognise the effect that data
localisation can have on transborder data flows, but suggests that the conditions
that data privacy laws traditionally impose do not necessarily amount to data localisation
measures. Focusing on data localisation in the context of data privacy and the governance
of globalised data flows, the report proposes a definition for data localisation,
outlines a roadmap to ensure that data localisation does not impede transborder data
flows, and makes recommendations to support such work. In particular, it emphasises
the relevance of the accountability principle and the proportionality test articulated
in the OECD Privacy Guidelines in evaluating data localisation measures.