Government Surveillance Practices to Impact U.S. Companies

Government data surveillance will likely cost cloud computing and tech companies more than originally projected two years ago. According to The Wall Street Journal, “the Information Technology and Innovation Foundation estimated that the revelations of widespread government surveillance by former defense contractor Edward Snowden could cost as much as $35 billion in lost sales and other expenses by 2016, as companies and governments opted not to buy IT products from U.S. companies.” The ITIF now predicts the amount will be much higher since data centers will need to be constructed in local jurisdictions in order to comply with international data sovereignty laws.

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