Europe threatens Russian Internet companies. Yandex, Mail.ru, Aviasales, Ozon are under attack

According to members of domestic IT firms, the introduction of the latest EU Data Working Law, aimed largely at combating the growth of American Internet giants, would inevitably also impact Russian industry abroad. If the legislation is passed, EU data will only be open to the European offices of Russian firms.

5:56 GMT, Monday, November 30, 2020

Fresh Euro barrier for data
The implementation of new data sharing regulations in European countries, the draft of which has recently been released on the European Commission (EC) website, would have a significant effect on the work of Russian IT companies and online services abroad, Kommersant wrote, citing the views of the interviewed Russian experts.

The European Union plans, according to the latest 43-page paper, to introduce limits on the movement of data to countries whose data privacy requirements are not compliant with European legal standards. In fact, those countries include Russia.

“First of all the new law seeks to limit major international IT firms’ access to data: “It introduces an alternate model for data processing approaches on large technology networks that because of their corporate models, can achieve a high degree of market leverage by managing large quantities of data,” the EC press release states.

Nevertheless, only the European offices of Russian firms will be eligible to engage in the sharing of data following the implementation of the current law, which will provide access to valuable data. But even those experts consulted say they would not be able to exchange this information with the Russian headquarters.

Representatives of domestic Internet trade, postal, gaming, medical, travel and other foreign facilities, including Yandex, Mail.ru Community, Aviasales, Wildberries, Ozon and others, could be included in the list of Russian IT firms potentially involved in cross-border data sharing with EU countries. Furthermore the latest EU Data Sharing Law could also have an effect on the interests of Russian artificial intelligence and big data firms.

Control of data in a European way

As noted in the EC press release on the publication of the framework for a new Data Processing Regulation, it will lay the groundwork for a new European way of managing data that is consistent with EU values and principles, such as the protection of personal data (GDPR), consumer protection and competition rules.”
Two forms of data processing are provided for in the draft new Data Management Law – commercial and free of charge, while the data itself is now separated into nine ‘trusted spaces’ according to the protocol suggested by the EC in February 2020 – from manufacturing to electricity, from healthcare to the ‘green path.’

“Margrethe Vestager, executive vice president of Europe Fit for the Digital Age, said, “You don’t have to exchange all the data. “But if you do it with sensitive data, you need to make sure it’s safe and trustworthy. We want to provide companies and citizens with the tools to manage data and build their trust that data is processed in accordance with European fundamental rights and values.”

The new solution includes the use of a model to increase confidence, based on the concepts of “neutrality and transparency of data intermediaries, who are organizers of the exchange or association of data, to increase trust,” the paper states.

A commercial data exchange broker is required to comply with a range of strict security standards and the format for data exchange in order to be impartial. It would then not be able to process the data on behalf of its own account, for example by selling it on a commercial basis to another organization or by using it to produce its own commercial product.

The paper also contains steps to make it possible for the authorities to reuse data already in their hands. The re-use of health records, for instance, will encourage studies to find treatments for rare or chronic diseases.

Following the introduction of the latest data sharing regulation law in 2021, more refined plans for “data spaces” are expected to enhance “the exchange of data between companies, business and the state,” the press release states.

According to the authors of the paper, the implementation of the new Health Care Legislation alone would allow the EU to save up to EUR 120 billion per year by strengthening individual healthcare, addressing rare and chronic disorders, and responding more efficiently and rapidly to global challenges in the COVID-19 group.

In Russia, Euro details

According to Alexey Neiman, Executive Director of the Big Data Association, Alexey Neiman, Executive Director of the Big Data Association, Alexey Neiman, Executive Director of the Big Data Association, the implementation of the new Data Sharing Law may become an obstacle to the growth of the Russian IT sector in the European Union, but there are still corresponding constraints, as Russia is beyond the list of countries with an acceptable standard of data security under the GDPR ( ABD).

According to him the cross-border sharing of data with Russian firms actually takes place mostly in the form of papers – ready-made analytical products, and not in the form of data itself. At the end of 2019, the data industry in Russia was valued at $45 billion in ADB, with a projection for growth to 100 billion rubles by 2024.

Kaspersky Lab reported that the organization has transferred the technology to deal with the data of European users to Switzerland, which has an agreement with the EU on an acceptable degree of security of personal data, but does not rule out that the EC proposal ‘can still be updated.’

The new GDPR Personal Data Security Law, which entered into force in the EU on 25 May 2018, has tightened a range of conditions for securing data processing consent and established new protections for data subjects. Both European organisations and subsidiaries of international firms working in Europe are entitled to the GDPR package.

Regulation of Large Data in Russia

In Russia, Russian President Vladimir Putin signed Law 242-FZ on the localization of personal data of Russians on the territory of the country on 31 December 2014 and entered into force on 1 September 2015.

Russian commercial data sharing law, however, is still at the design level. … As a result, the bill was widely criticized by the industry for’ interfering with current law and excessive oversight of IoT system data collection.’

In October 2020, the ADB addressed a letter to the Russian Government to provide private businesses with rapid access to data from state information systems (GIS) and state registers on a commercial basis for data relating to Russians. The request included in particular, a plan for the creation of a ‘road map’ for the development of electronic collaboration between the state and private enterprises.