Over 2,000 startups could go out of business for Data Protection Act: US ambassador

Over 2,000 startups could be put out of business, and services that Bangladeshis use millions of times every day could become inaccessible due to the proposed Data Protection Act (DPA), says US Ambassador in Dhaka Peter D Haas.

"We worry the DPA, if passed with strict data localization requirements, may force some US companies currently operating in Bangladesh to leave the market," The US ambassador added while speaking at an event titled "Online Freedom & Business Investment in Bangladesh" in Dhaka on Sunday (5 February).

He said, "The United States government does have concerns about the regulations for digital, social media, and over-the-top platforms the Bangladesh Telecommunications Regulatory Commission and the Ministry of Information have introduced, as well as the draft DPA.

"Because we value our partnership with the Government of Bangladesh, we have voiced these concerns directly with the government.  Before I describe some of our concerns though, let me be clear: we respect that Bangladesh will choose for Bangladesh."

"So, what are some of our concerns?  We worry the DPA, if passed with strict data localization requirements, may force some US companies currently operating in Bangladesh to leave the market.

The online platform regulations will similarly dissuade companies from investing in their businesses here [in Bangladesh], if they face criminal liability for user content," he added.

He said, "The culture of innovation so crucial to attracting business requires openness and freedom online. This brings me next to the topic: human rights. The United States recognizes the need to govern online content to protect end users and vulnerable populations. This is no easy task.

"However, as we look at the draft online platform regulations, we are concerned about the broad definitions for what type of online content is deemed criminal. The ability to accept criticism and ensure freedom of speech even when that speech is unpleasant are hallmarks of a strong democracy."

"The US Embassy has heard from many civil society organisations and journalists. They fear these regulations and laws will restrict fundamental human rights and freedoms. Likewise with the DPA.  We are concerned the latest draft of the DPA does not provide for an independent data oversight authority and that it includes criminal penalties."

"While each country must design laws that apply in its local context, there are clear international standards we urge all countries, including Bangladesh, to uphold. Online speech and data protection are not easy issues to address.  This is incredibly complex.  This is why we are having this discussion.

"In the United States, we know first-hand how hard it is to combat disinformation, protect vulnerable groups, and encourage business growth. From Washington to Silicon Valley, we've had to learn many lessons, and we are still learning and openly debating these complex issues," the US ambassador furthered.

He said, "Ultimately, development and security cannot be elevated above democracy and human rights.  These values are all linked and mutually reinforcing. Protecting human rights and upholding democracy strengthens a country's economy and brings sustainable, inclusive prosperity.

"We are encouraged the government of Bangladesh continues to consult with commercial and business entities, civil society, and international partners on these topics.  This openness is commendable. We sincerely hope that the next draft of the DPA incorporates feedback from these many sectors, and we believe Bangladesh will be better for it."

"We [the USA] firmly believe that an appropriate balance between international data protection standards, economic connectivity, and individual rights will facilitate this country's continued development. We are steadfast partners of Bangladesh and want to see its success," Peter Haas added.