Tech Groups Support Konektadong Pinoy Bill, Oppose Data Localization

Manila: Technology-based organizations in the Philippines have thrown their support behind the proposed Konektadong Pinoy Act, calling it a landmark reform that can modernize the country's outdated digital infrastructure policies and close the connectivity gap. According to Philippines News Agency, six leading industry groups-Global AI Council Philippines, Blockchain Council of the Philippines, Cybersecurity Council of the Philippines, Data Center Association of the Philippines, Fintech Philippines Association, and Go Digital Philippines-issued a joint statement lauding the bill's goals of expanding internet access and improving digital services across the country. The groups expressed their strong support for the Konektadong Pinoy Act, emphasizing its potential to modernize the Philippines' digital infrastructure policy and help close the country's connectivity gap. They highlighted that updating analog-era regulations would encourage competition, streamline the entry of new players, enable infrastructure sharing, and improve spectrum management. The expected outcome, according to the groups, would be cheaper, faster, and more widely available internet, particularly in underserved and remote areas-an ongoing issue in the Philippines, where slow and expensive connectivity has been a barrier to economic inclusion and digital transformation. The tech groups also pointed out the bill's significance in empowering consumers and businesses, describing the Act as a major step toward building a more inclusive and competitive digital economy. It aims to empower consumers through improved service standards and enhance the ability of small businesses, startups, and communities to participate meaningfully in the digital space. However, the coalition urged lawmakers to remove any data localization or sovereignty provisions from the final version of the measure, emphasizing that such requirements would drive up business costs, disrupt operations, and limit access to technologies like cloud computing and AI. They warned th at this could negatively impact SMEs, deter investment, and weaken the competitiveness of the Philippine IT-BPM and digital sectors. The groups noted that the country already has existing safeguards under the Data Privacy Act and is aligned with international best practices like the APEC Cross-Border Privacy Rules, making data localization unnecessary. They stressed that data security is about protection, not location, and warned that localization mandates might increase cybersecurity risks by hindering coordinated threat detection and response. The tech groups expressed their readiness to partner with the government in realizing the law's vision, viewing the Konektadong Pinoy Act as a potential foundation for digital transformation. Both houses of Congress ratified the Konektadong Pinoy bill on June 9, and it is now awaiting President Ferdinand R. Marcos Jr.'s signature to become law.