Transborder Data Flows Research Articles

Transborder data flows: adoption and diffusion of protective legislation in the global electronic commerce environment

Information privacy is currently regarded as one of the key ethical issues of the information age. Rapid technological developments and the advent of Internet based commerce or electronic commerce (e‐commerce) have forced several nations of the world to enact legislation to protect the information privacy of their citizens and corporations. Transborder data flows (TBDFs) have been known to have a significant impact on multinational and transnational corporations with respect to international data transfers. This paper discusses the issues and implications of TBDFs and provides a comparative account of the privacy laws on individual data protection in different countries. Also proposed is a theoretical model relating to diffusion of social policies of use with respect to the adoption and diffusion of privacy laws by different nations of the world in a global e‐commerce environment.

Transborder data flow: is there a solution in sight?

Transborder data flow: is there a solution in sight?

The Transfer of Personal Data to Third Countries Under EU Directive 95/46/EC

The 1981 Council of Europe Convention 108 and EU Directive 95/46/ EC assert that data protection is privacy protection. Consequently, countries with data protection rules control trans-border data flows to protect the rights of their citizens. Under the Directive, but subject to some derogations, personal data may only be transferred to third countries with adequate protection. 'Adequacy' is to be assessed in the light of all the circumstances. Alternative safeguards can be provided by means such as contractual arrangements. The Data Protection Commissioners have tried to define 'adequacy' as the usual data protection principles plus an assurance of compliance. This can be delivered by self-regulation as well as formal law. The Directive has not made a radical break with the past. The usual principles are those found in Convention 108 and in the 1980 OECD Guidelines. Those instruments also dealt with the control of trans-border data flows because of fears of restrictions on the free flow of information. The flexibility of the effective current UK law, which permits flows whilst preventing those which would lead to a breach of data protection, would have prevented the acrimony of the current debate with third countries. National laws on transborder data flows long pre-date the Directive and data protection authorities can be expected to continue to promote pragmatic methods of protecting exported data such as the use of model contracts either as a basis for derogation from 'adequacy' or as part of a package to satisfy the adequacy test. Work is taking place to build bridges between those with formal law and others relying on self-regulation. In Ottawa last October OECD ministers reaffirmed the 1980 Guidelines and if practical privacy protection can be secured globally, transborder data-flow control is of much less concern.

Information System Development in a Global Environment

SUMMARYIn this article the basic components of an information system in a multinational context are reviewed. Based upon these components, three types of generic challenges in developing a multinational information system are suggested: (1) managing the planning and development of the system; (2) challenges of data collection; and (3) technological and legal challenges related to transborder data flows. Finally, a local approach to information system development is outlined as the response corporations must take to achieve and maintain global competitiveness.

Achieving Personal Data Protection in the European Union

Actions aimed at exploiting the benefits of information and communication technologies have become a major focus of European Community (EC) policy.The new technologies offer considerable benefits to consumers, businesses and governments, but there is growing concern that their widespread use may threaten the privacy of personal information. Increases in transborder data flows, within the EC and globally, imply that a EC‐wide, and ultimately a global, approach is more appropriate than one based upon national rules. This article examines the evolution of EC personal data protection policies and concludes that, whilst considerable progress has been made towards establishing a regulatory framework, advances in technology and continuing variations in national responses seeking to protect personal privacy, are major obstacles to achieving data protection equivalence, both within the EC and in third countries.

The impact of transborder data flow restrictions on international information systems management

This research investigates the effects of transborder data flow (TDF) restrictions on the information systems (IS) management strategies and costs of multinational corporations. An empirical study was designed to investigate several research hypotheses dealing with the impact of TDF restrictions on IS structure and strategies across different industries. Statistical results indicate that TDF restrictions will significantly increase IS costs and influence MIS decisions overseas. To alleviate the problem, MNCs are adopting distributed approaches to manage their international IS. These findings allow some important implications to be drawn for both practitioners and researchers dealing with this pressing issue.

The Adequacy of Privacy: The European Union Data Protection Directive and the North American Response

The recently passed European Directive on the Protection of Personal Data aims to harmonize European data protection law at a higher level of protection than exists now. It represents a European consensus on a standard for personal privacy and a model for countries without data protection laws. The protracted process for agreement and ratification, however, has produced a document with many derogations and ambiguities, reflecting the wider moves towards ''subsidiarity'' within the European Union. Of concern to North America is the stipulation that transborder data flow may not be permitted unless the receiving country can demonstrate an ''adequate'' level of protection. While the process through which this provision will be interpreted and applied is so far found to be complicated and unclear, nevertheless European authorities will be reluctant to tolerate ''data havens,'' a fact that should concern North American business that relies on the unimpeded flows of personal data from and to Europe. Neither Canada nor the United States can claim ''adequate'' data protection according to the European standard. However, Canadian efforts through the Canadian Standards Association and the Federal Information Highway Advisory Council signal an attempt to fashion a more comprehensive policy framework for privacy than the more incremental and reactive approach of the United States. This divergence is explained by key cultural, economic, and political factors within Canada, which have caused a different reaction to the extraterritorial effects of the European Union's Data Protection Directive.

Control of transborder data flow: reactions to the European data protection directive

Control of transborder data flow: reactions to the European data protection directive

Impact of the EU data protection directive on transborder data flows

This article presents the thesis that the EU Data Protection Directive is likely to have a substantial impact on international businesses. In particular, the transborder dataflow rules in the Directive are examined and are found to be incompatible with distributed network environments in general and the Internet in particular.

Perceptions of reliances placed on data transmission control measures: Global versus domestic-only private network usage

This study focuses on the transmission of organizational information over data communication networks. The study examines whether US firms whose private network features extend beyond US borders rely more on specific data communication control measures than do firms that either do not use private network features or use them for domestic operations only. The use of these control measures are important because of the implications to the risk in transmitting strategic corporate information over data communications networks and the increased risk when the data communications function of a firm extends globally. The results of the survey when considered with prior research regarding global multinational corporate control and global information systems practices conclude that organizations may be exercising enhanced controls over transborder data flow, but they could be doing even more. This paper offers important information for corporate officials who are dependent on efficient, reliable and secure international information flow across the organization structure. The study also offers directions for further research into the phenomena.

Defining a communications satellite policy system for the 21st century: A model for a international legal framework and a new “code of conduct”

This paper addresses the changing international communications environment and explores the key elements of a new policy framework for the 21st Century. It addresses the issues related to changing markets, trade considerations, standards, regulatory changes and international institutions and law. The most important aspects will related to new international policy and regulatory frameworks and in particular to a new international code of ethics and behavior in the field of satellite communications. A new communications satellite policy framework requires systematically addressing the following points: • • Multi-lateral agreements at the nation state and the operating entity level • • Systematic means to access both private and public capital • • Meshing ITU regulations with regional and national policy guidelines including • • landing rights” and national allocation procedures. • • Systematic approach to local partnerships • • Resolving the issue of the relative standing of various satellite systems (i.e. GEO, MEO, and LEO systems) • • Resolving the rights, duties, and priorities of satellite facility providers versus types of service prviders. Beyond this policy framework and generalized legal infrastructure there is also another need. This is a need that arises from both increased globalism and competitive international markets. This is what might quite simply be called a “code of reasonable conduct:” To provide global and international communications services effectively and well in the 21st Century will require more than meeting minimum international legal requirements. A new “code of conduct” for global satellite communications will thus likely need to address: • • Privacy and surveillance • • Ethics of transborder data flow • • Censorship and moral values • • Cultural and linguistic sensitivity • • Freedom of the press and respect for journalistic standards As expanding global information and telecommunications systems grow and impact every aspect of modern life, the need for new international policy and especially new suitable standards of conduct in the field of satellite communications become ever more apparent and necessary.

An analysis of the cultural motivations for transborder data flow legislation

Transborder data flow legislation (TDFL) has recently emerged as an important issue for IS professionals. Transborder data flow (TDF) is the movement of computer readable data across national boundaries. Many countries have enacted legislation barring this free flow of information, citing a concern for the privacy of citizens as the primary motivation. The need for privacy is the reflection of a society′s cultural attributes. A framework is developed for exploratory analysis of the cultural motivations for data protection legislation. Based on Hofstede′s research, establishes a relationship between certain attributes of culture and nations that have adopted/proposed TDFL. Using this relationship, discusses the reasons for which other nations have not adopted/ proposed TDFL.

The efficacy of international regulation of transborder data flows: The case for the clipper chip

Abstract This article discusses the origins of Transborder Data Flows (TDFs) as an international problem in the early 1970s and the realization, among all concerned, that country-by-country control of such TDFs was likely to be problematic. The article shows how further technological development in telecommunications and networks in the intervening years has made regulation more complex but also more urgent. Part of this urgency emanates from increased danger of computer crimes such as copyright infringement, breach of personal privacy, and electronic sabotage. The problems being experienced by the U.S. government in responding, unilaterally, to this danger through the Key Escrowed Encryption System (KEES), popularly known as the clipper chip , illustrate the need for an international response. Such a response, is feasible in the 1990s due to the growth of multilateralism and the changing nature of national sovereignty. The article recommends the internationalization of the KEES and development of broad international TDF regulations and enforcement mechanisms.

A Legal Survey of Direct Debit in International Sales

Examines the new system of collection of payments in international and community sales by direct debit. Refers to English law and some EC opinions related to the issue. Highlights the legal pitfalls and suggests ways to maximize business planning in this regard. Identifies the procedure involved in the “signing on” to such a system/service, the benefits afforded by the service and the possible eventuality of litigation. Makes comparison with some other forms of collection and payments, drawing together some differing practice in other member states. Also discusses the legal impact of electronic data interchange and governmental policies on transborder data flows against the backdrop of business strategy.

Transborder Data Flows Usage by U.S. Subsidiaries in Mexico and Hispanic South America: A Preliminary Regional Study

Transborder data flows (TDF) have been shown to be vital to multinational corporations (MNCs) in managing the complex information flows required for control and implementation of worldwide strategy. Research on TDF has generally been on a global scale and from a headquarters perspective. This preliminary study takes a new direction by reporting results of a survey of TDF activity on a regional rather than a global level of analysis and from the viewpoint of U.S. MNC subsidiaries overseas rather than from a headquarter's driven analysis. In addition to a breakdown by manufacturing and service industries usage of TDF by functional area within the region is reported along with the climate of governmental regulation for TDF in the emerging economies of Mexico and Hispanic South America.

Information systems solutions for transborder data flow problems for multinational companies

While technology makes transborder data flow (TBDF) faster and cheaper, the privacy, economic concerns, sovereignty and cultural ‘imperialism’ factors work in the opposite direction. Nations have enacted various regulations to control TBDF as well as the use and choice of hardware, software and telecommunications. Such regulations may create major barriers for multinational companies (MNCs) to manage their global information systems (IS). The magnitude of problems of TBDF barriers on the IS of multinational-type, global-type and transnational-type MNCs is analysed. The analysis led to seven recommendations regarding the management of TBDF barriers: a decentralized global IS for multinational MNCs, a partially centralized global IS for global MNCs, a partially integrated and distributed IS for transnational MNCs, remote computing services, data reduction, alternative channels and reduction of databases.

Old issues in a new guise

“Are there restrictions on transborder data flow in your country?” This question is often put to me. For a while I would quickly respond “No, Canada has not enacted rules governing transborder data flow the way that certain European countries have done”. But in many ways this is a meaningless response to a poorly formulated question. What this article seeks to do is to give some suggestions on how to formulate the question better in order to elicit a more meaningful response.

Legal aspects of transborder data flow

The technology of international information flows is widely understood, easily applied and generally well coordinated internationally. By contrast, legal responses to it have lacked full understanding, been fitfully applied and fragmentary in nature. The aim of this article is not to provide answers to all legal aspects of Transborder Data Flows (or TBDF) but rather to provide guidance on the types of questions to be asked in the first place. In doing so, the areas likely to give rise to practical problems, especially to users operating an international data network or intending to establish one, will be highlighted.

Attitudes of college students towards computers: A comparative study in the United States and the Middle East

The trend towards global computer-based systems and concerns about the issues associated with transborder data flows raise the need for an understanding of the perceptions and attitudes towards computers of people in different countries. This paper describes computer attitudes of college students from two geographic areas — the United States and Kuwait. The 20-statement Computer Attitude Scale (CAS; Nickell & Pinto, 1986) was used to collect responses of the students. Two hundred eighty-six students from a private university in the United States and 130 students from the University of Kuwait participated in the study. Scores on the CAS were found to be significantly different between students from the two countries. Scores were also found to be related to certain cultural and background characteristics of students in each country.

Electronic data interchange: The perspectives of private international law and data protection

Abstract The following considerations deal with the impact of private international law and data protection regulations on electronic data interchange (EDI). The article is based on the example of a German corporation which transfers personal data of employees to a British transferee. These transborder data flows lead to the difficult question of which law has to be applied. It is intended to show that the regulations of the German Data Protection Act (BDSG) have to be applied in this case. A contractual choice of law is invalid because of the mandatory nature of the BDSG. According to the German act, personal data can only be transferred to foreign states with an equivalent legislation on data protection. A comparison between the British and the German regulations shows that the British law is not likely to be equivalent to the German standard. Therefore, it is very doubtful whether personal data are allowed to be transferred from Germany to Great Britain. The transferor and transferee may, however, make...