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Startups say data-localization and source-code demands would force small U.S. firms from foreign markets
Summary
A founder of a sleep-health startup told a House subcommittee that small companies cannot absorb the compliance costs of data localization or forced source-code disclosure and would likely exit markets that impose those rules, undermining global market access for U.S. startups.
Olivia Walsh, chief executive officer and founder of Arcuscope, told the House Ways and Means Subcommittee on Trade that small U.S. technology firms face steep compliance costs from nation-specific data rules and could leave markets rather than reengineer infrastructure or surrender proprietary code. "If we were in a position where the choice was between redoing our back end or leaving a country whose specific rules were a compliance challenge, we would almost certainly just stop operating in that country," Walsh said.
Walsh explained that Arcuscope is a…
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