By Emmanuel Mounier, Secretary General, Global Travel Tech.
Buying a plane ticket or booking a hotel night online might seem like a routine task, but this everyday action relies on the seamless flow of data across borders. However, as governments introduce stricter rules on data storage, transfer, and digital sovereignty, this straightforward process could soon become more complicated. A wide array of regulations—from data localisation to cybersecurity rules and AI governance—are starting to impact industries that depend on the free exchange of information, potentially reshaping our everyday experiences.
The Rise of Digital Sovereignty and Regulatory Challenges
The EU Commission’s creation of a new portfolio for Tech, Sovereignty, Security, and Democracy, led by Finnish Commissioner Henna Virkkunen, underlines the growing attention that political institutions are paying to these issues. The push towards digital sovereignty is rooted in concerns over national security, economic control, and the protection of digital ecosystems. Governments are increasingly imposing regulations that not only dictate data storage and flow but also address broader issues like cybersecurity, artificial intelligence (AI), and cloud computing. Regulations such as the EU’s GDPR, China’s Data Security Law, and India’s new data protection laws reflect a growing global focus on digital sovereignty and security, affecting not only data but all aspects of the digital economy.
The Consequences for Global Digital Industries
While these regulations aim to address legitimate geopolitical challenges, they often have unintended consequences for industries with minimal geopolitical sensitivity, such as travel technology. Sectors reliant on cross-border digital activities are beginning to feel the weight of these restrictions. Rules affecting data localisation, AI, and cloud computing add layers of complexity to industries that depend on the rapid, open exchange of information to deliver timely services. For example, booking a flight or accessing real-time travel updates is becoming slower and more expensive as a result of these increasingly fragmented regulations.
Governments’ concerns regarding digital sovereignty are legitimate, and the protection of sensitive data is critical in today’s interconnected world. However, Global Travel Tech (GTT) argues that these measures should not unnecessarily disrupt industries that rely on operational data with little or no security risks. There must be a distinction between regulations designed to protect sensitive personal or geopolitical data and those that can affect operational efficiency without providing meaningful security benefits.
Balancing Security and Global Digital Trade
As digital sovereignty becomes a focal point for policy, Global Travel Tech calls for a more balanced regulatory framework. This framework should protect national interests without hampering low-risk digital activities crucial to sectors like travel technology. GTT advocates for nuanced policies that can maintain individuals’ privacy and government security needs, while still allowing for the unrestricted flow of operational data, which is key to ensuring service quality and competitiveness in a global digital economy.
The need for balanced regulations that protect digital sovereignty without stifling innovation or the flow of low-risk data is becoming increasingly urgent. As digital borders tighten, preserving global connectivity and the economic benefits it brings will require a more sophisticated approach to regulation. Governments and industries must collaborate to ensure that the digital economy can continue to thrive in an environment where security and open digital trade can coexist.