A PIDS study underscored the effect of countries’ varying data protection regulations and the practice of regulatory arbitrage by firms to circumvent less favorable regulations. It explained that the regulatory hurdles a digital platform firm may face in a particular jurisdiction, such as the Philippines, may urge that entity to locate and operate elsewhere where regulations are less stringent. It may also avoid being subject to the Philippines’ Data Privacy Act but still target the Philippine market while operating offshore. It may also relocate its head office in a preferred jurisdiction but still maintain a presence in the Philippines to take advantage of certain regulations.

Know more about the publication titled “Cross-border Data Regulation for Digital Platforms: Data Privacy and Security” here: https://www.pids.gov.ph/publications/7176.

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