Won’t Happen No risk of data localization – encryption solves mistrust.
Otto 14 (Greg Otto, Tech Reporter at FedScoop, Can encryption stop the 'balkanizing' of the Internet?” FedScoop, 26 September 2014, http://fedscoop.com/encryption-internet-data-localization/, *fc)
Mulvenon later said he believes trust will be restored when encryption eventually becomes standard for the majority of Internet users.
"The basis for trust in my daily life is robust, transparent encryption," he said. "But it also has to be easy enough for my mother to use. It can't be that you can only be a crypto-paranoid if you run GPG on the command line. It has to be something that is baked in to a basic level of what we are doing."
Even with countries and companies wringing their hands over how data moves across borders, U.S. Coordinator for International Communications & Information Policy Daniel Sepulveda doesn't see the Internet fragmenting into something different than what it is today.
"At the end of the day, there is literally not a country that has chosen to not connect to the global Internet," Sepulveda said. "There is a discussion by some politicians in some countries about constructing intranets inside their country and disassociating themselves from the global internet. That is actually not happening."
Alt Causes Alt cause – U.S. companies are building servers in other countries to allow data localization.
Rashbaum 3/6 (Kenneth Rashbaum, Partner at Barton LLP with a Juris Doctor from the Hofstra University School of Law, “Sorry, Europe: Data Localization Is Not the Killer App for Privacy,” Logicworks, 6 March 2015, http://www.logicworks.net/blog/2015/03/data-localization-privacy-protection-europe/, *fc)
Edward Snowden has unleashed a torrent of activity in the name of data security and privacy protection. Some of that activity has resulted in the creation of jobs, especially in the field of encryption technology (the better to foil the NSA, the theory goes) and stimulation of local economies through the construction of local data centers in Europe. Alas, Virginia, there is no magic bullet for privacy in housing data within one country because data, it has been said, wants to be free. To mix metaphors, it will seek its own level. To put it bluntly, data localization, as housing data within one’s own country is called, is an expensive fantasy that won’t move the privacy ball very far.
The Wall Street Journal reported on February 23, 2015 that Apple has agreed to build two data centers, one in Denmark and one in Ireland, at a cost of approximately two billion dollars. Construction of data centers means creation of many jobs and a good jolt to the local economies of the places where the centers are built, which would be a very good thing for Ireland (data center construction has been a “tent pole” for the Irish economy for some time). The data centers could also go a long way to salving bad feelings across the pond with regard to Apple’s activities that have rubbed regulators the wrong way. Indeed, the sidebar to the Wall Street Journal article is entitled “Apple’s Pitch to European Lawmakers Drips in Honey.”
Apple, then, appears to follow other web technology companies such as Google, Amazon and Microsoft in catering to European fears of U.S. access to personal data by attempting to implement “data localization;” that is, assuring users that their data will be stored on servers within one’s home country. Russia has proposed a bill with this requirement and similar proposals have been advanced within the European Union.\
Privacy Alt Causes Alt cause to privacy – corporations keep detailed records of customers to remain competitive.
Furchtgott-Roth 5/21 (Harold Furchtgott-Roth, Senior fellow at the Hudson Institute and adjunct professor of law at Brooklyn Law School with a Ph.D. in economics from Stanford, “USA Freedom Act: U.S. Government Does Not Control Internet or Privacy,” Forbes, 21 May 2015, http://www.forbes.com/sites/haroldfurchtgottroth/2015/05/21/u-s-government-does-not-control-internet-or-privacy/, *fc)
The Internet business model for most companies is monitoring and capitalizing on consumer behavior. Amazon and other companies keep track of consumer buying habits. Google and other companies keep track of consumer search and browsing habits. Facebook, LinkedIn LNKD -2.73%, Twitter TWTR -2.19% and other companies keep track of networks or contacts. Many companies keep track of electronic communications. Few if any of these companies keeps track of “call detail records” or even narrowly defined “tangible things.” If they have such records, they are hardly of any value.
American Internet companies are the most successful in the world. They dominate their industry. They do so not because they have “call detail records” or narrowly defined “tangible things.” They do so not because they refuse to share such “call detail records” or “tangible things” with the federal government. Instead, they do so because they have much richer and more robust information than “call detail records” or narrowly defined “tangible things.”
A business with just “call detail records” or even narrowly defined “tangible things” could not compete in the competitive online world. If it wanted information about a person of interest, John Doe, an Internet company would not start or end with “call detail records” or narrowly defined “tangible things.” It would use a vast array of information, some of it publicly available, much of it not.
It would discover a great deal about John Doe: his buying habits, his search and surfing habits, his circle of individuals with whom he has ever communicated, and quite likely the content of those communications. All of this vast array of information likely cannot be articulated in a narrow manner to meet the “tangible thing” statutory definition. A particularly clever company might even have access to most or all of John Doe’s electronic records and geographic mapping of everywhere John Doe has been at any given time. Online businesses do not keep track of all of this information because of technological limitations; they keep track of only that information which is commercially valuable.
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