Japan will promote the free flow of personal data with the U.S. and the European Union by creating common rules on data privacy protection, Nikkei has learned. The new standards, to be worked out next year, aim to allow personal data to be shared across borders, making it easier for businesses to use such information to develop new products.
To ensure that companies and other organizations protect individual data, it will establish stiff penalties for those that fail to adhere to the common rules. The regulations will restrict the transfer of personal data to countries such as China that lack proper privacy protection regimes.
The rules are expected to build on recent initiatives, such as the Cross Border Privacy Rules, which enables transfers among members of the Asia-Pacific Economic Cooperation forum.