Sorry, No Mastercard? Digital Trade Needs Rules
Strong-arming companies over data localization is catching on fast in big countries, and Biden should use all his diplomatic powers to stop it.
India wants the data stored at home.
Photographer: Andrew Harrer/BloombergMastercard Inc. has been told not to issue new cards in India. It’s a move that underscores the urgent need of a U.S.-led digital trade pact to set global standards for what sovereign states can and cannot do to firms that obtain and process data internationally.
The Indian central bank pulled the plug on the U.S. payments network for alleged noncompliance with its controversial local data storage rules introduced three years ago. In April, the monetary authority imposed similar restrictions on American Express Co. and Discover Financial Services’ Diners Club cards. Existing customers are going to be fine in all three cases, but the harsh penalties will still reduce competition in the market.
