TikTok Measures Mark a Sharp Turn for U.S. Policy

October 5, 2020

In a severe departure from our previous course, the United States seems to be embracing data localization laws. Nextgov declares, “On TikTok, the Trump Administration is Adopting China’s Own Vision for the Internet.” Though the Administration’s opening demands on the issue have not come to pass, the compromise does mean the data of U.S. TikTok users must be stored in this country on Oracle’s servers. Writer, and GMF Digital director, Sam duPont observes that the administration’s claim it acted out of security concerns does not hold water—the privacy risks of using TikTok, though considerable, are present with many apps. Targeting one company makes little sense. It looks more like a move to assert digital sovereignty and block the free flow of data. DuPont writes:

“On the other hand, requiring domestic data storage as a solution to the risks presented by TikTok is right out of China’s own playbook for the internet, which it has been advocating around the world. Governments in Russia, Indonesia, Saudi Arabia, Turkey, Vietnam and elsewhere have imposed or considered replicating data localization requirements akin to China’s own. Until recently, the United States has been a staunch opponent of these laws. And for good reason. Data localization requirements do little to improve the privacy or security of data, but they come with significant economic costs. Data storage and processing is a scale business. When a small Korean company can take advantage of cloud computing services provided by a U.S. company with servers located in Singapore, everybody wins. But where data localization laws require redundant data storage and processing facilities in every market, the economic advantages of digitalization diminish rapidly. Like all wars, the U.S.-China digital trade war has come with casualties, and chief among them is the U.S. commitment to an open, global internet.”

We’re reminded of the administration’s “Clean Network” program, an effort to sever all cyber connections between China and the U.S. This digital isolationist posture is similar to that of China itself and, if enough countries follow suit, will endanger the free-flowing internet that connects people around the world both personally and professionally.

Cynthia Murrell, October 5, 2020

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