As Data Protection Regimes Diverge, Will Japan’s Data Free Flow With Trust Bridge the Gap?

When regulatory frameworks are consistent, interoperable, and allows data to flow freely, businesses can maximise their potential for innovation and ensure that costs are not passed down to end-consumers unnecessarily.

On the other hand, when countries have differing approaches, companies face high compliance costs in trying to navigate inconsistent approaches to privacy, such as having to invest in more expensive – and potentially less secure – local server providers.

A report by the Information Technology & Innovation Foundation found that when a nation’s data restrictiveness increases by 1 unit, this can cut its gross trade output by 7 per cent, slow productivity by 2.9 per cent, and over a period of five years, raise downstream prices by 1.5 per cent.