Govt asks Amazon India to set up server to protect customers' personal data

The government has asked American e-commerce major Amazon to set up a server in India as it looks to prevent unbridled migration of the personal data of customers. Recently, Electronics and Information Technology Minister Ravi Shankar Prasad conveyed this to Amazon India head Amit Agarwal. In the past too, the government has been vocal about data localisation, engaging with companies such as Google, WhatsApp and Facebook on the issue.

Although currently there is no law in India regarding data safety, the government is working on a data protection framework based on the recommendations of Justice B N Srikrishna-led panel. To start with, foreign e-commerce companies will be asked to set up servers in India, so that the personal data of customers, generated through e-commerce operations, does not go out of the country. The draft national policy for e-commerce also proposes mandatory localisation of customer data. However, once the data protection rules come into effect, all the sectors will fall under their purview.

“Big foreign companies are welcome to join their effort in India. What concerns me is unbridled migration of data, without the consent of Indians. Therefore, location of servers in India and the element of consent of Indians for use of their data become equally important,” Prasad said.