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Draft Data Protection bill is going to impact start-ups negatively, says IAMAI and NASSCOM

September 05, 2018
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The Internet and Mobile Association of India (IAMAI) and National Association of Software and Services Companies (NASSCOM) have stated the draft data protection bill is going to have a negative impact on the start-ups.

The recommendations draft data protection bill included data localisation and restrictions on collection of data among others.

IAMAI was of the view that imposing limitations on purpose, storage and collection of data would make it difficult for the Indian start-ups to operate as they rely primarily on data collection. To this effect, IAMAI had held a stakeholders consultation wherein concerns regarding restrictions on data usage and the high costs for start-ups were raised.

Further, IAMAI also raised the issue of the burden of compliance which included periodic auditing of data and taking permission from the proposed Data protection Authority for introducing any new technology.

NASSCOM had circulated a note which stated that privacy or security of data cannot be addressed by localisation.

Finally, both the associations were of the view that costs for the companies would increase in the new data regime.

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