UK may become the next data haven

Britain could become a “data haven” for online companies after Brexit, as The European Commission is considering introducing laws for online platforms such as Facebook and Amazon to control how they operate in Europe.

The commission, which has plans to create a “single digital market” for online services, has become increasingly concerned about the growing power of US technology giants, and fears that European start-ups have been squeezed out by their power. Britain, on the other hand, could welcome them with open arms.

The ITI, whose members include Apple, Amazon, Google and Facebook, has urged the EU to take a “non-discriminatory approach” and to carefully consider and new laws.

“There could be directions that the UK goes that are more positive for tech, not just for entrepreneurship in London, but also for the ability of global tech firms to do business here and engage with the rest of the world,” Josh Kallmer, head of global policy at the Washington-based Information Technology Industry Council (ITI), said.

If EU imposes strict rules, companies with global footprint would want to do their business from a jurisdiction that has fewer regulatory restrictions and fewer limitations on what they can sell to the rest of the world. So the UK becomes a more desirable option.