Exploring digital sovereignty through data flows: empirical evidence from the backbone of the internet

Enxhi Leka ()
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Enxhi Leka: IMT-BS - DEFI - Département Data analytics, Économie et Finances - IMT - Institut Mines-Télécom [Paris] - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris], LITEM - Laboratoire en Innovation, Technologies, Economie et Management (EA 7363) - UEVE - Université d'Évry-Val-d'Essonne - Université Paris-Saclay - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris]

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Abstract: This study investigates the achievability of digital sovereignty within the European Union by examining website data flows, mainly focusing on non-personal data. Amid growing concerns over data governance and the resurgence of digital sovereignty as a central theme in EU policies, this research uniquely addresses firms' data storage decisions and their implications for EU users. Utilizing an original dataset of the most visited websites in France, this paper analyzes data location preferences across various sectors, revealing a complex interplay between privacy regulations, firm size, sector-specific tendencies, and the underlying internet infrastructure. The findings suggest that firms prioritize data storage in countries with strong privacy regulations and tend to locate data closer to consumers to minimize latency. However, variations are observed based on sector-specific needs and firm size, with larger and tech-oriented firms showing less sensitivity to distance. The study also highlights the significant role of the Internet's backbone infrastructure in shaping data storage strategies, pointing to potential challenges in aligning with digital sovereignty goals.

Date: 2024-12-18
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Published in WISE 2024 : Workshop on Information Systems and Economics, Dec 2024, Bangkok, Thailand

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05018734

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