Data Anonymity

Business Standard     29th July 2020     Save    
QEP Pocket Notes

Context: The recommendation of the Kris Gopalakrishnan committee on Non-Personal Data (NPD) usage needs a relook since it is marred with various issues.  

Suggestions of the Committee regarding NPD usage

  • Setting up a regulator: With the powers to request data, supervise data-sharing requests, and settle disputes.
    • NPD regime should favour Indian companies: This is consistent with India’s refusal to sign a G- 20 treaty allowing cross-border data access and data-sharing between nations.
    • NPD categorization: into three classes:
      • The first is public data collected by the government like census data, health ministry records, and municipal records.
      • The second is community NPD, For E.g. electricity consumption in a locality or eating habits in a neighborhood, would also include telecom services data.
      • The third category is anonymized sensitive personal NPD such as may be collected by a hospital.
    • Data Anonymization: In all cases, data will be anonymized with personal identifiers removed.
    • Obligation of the companies:
      • Companies collecting NPD should register with the government and make data mandatorily available after anonymization.
      • Also disclose how the data is collected and store it devoid of personal details.
    • Creating economic opportunities: $ 500 billion opportunities in the next five years is predicted by selling of the anonymized data to the private entities.

Issues with committee’s suggestions:

  • NPD can be easily de-anonymized:
    • For E.g. data collected form food delivery businesses, relating to eating habits of an area can be de-anonymized if tied to electoral rolls and telecom records.
    • The government already has vast amount of personal data which can be easily linked to the anonymized data.
  • Commercial issues
    • Severely impacts business model: If the data collected by the government is made to sell to the rival businesses, it will create caution among the investors thus impacting investments.
    • Intellectual Property Eroded: Mandatory revelation of the method of data collection and anonymization impacts innovation
  • No precedence available: Such a system of mandatory data collection and nationalized data warehousing doesn’t exist anywhere
QEP Pocket Notes