Recital 19

Regulation (EU) 2018/1807 of the European Parliament and of the Council¹² introduced a key principle for supporting the data-driven economy within the Union, underpinning in concrete terms the freedom of establishment and freedom to provide a service. ‘Free flow of data’ within the Union, clarified through the prohibition to impose data localisation, remains a fundamental principle, providing legal certainty to businesses, and should be retained in Regulation (EU) 2023/2854. The Commission should continue monitoring deviations from this principle. The provision does not affect the data processing in so far as it is carried out as part of an activity which falls outside the scope of Union law, in particular as regards national security, in accordance with Article 4 of the Treaty on European Union. At the same time, other provisions of Regulation (EU) 2018/1807 are superseded by more recent rules. Notably, Chapter VI of Regulation (EU) 2023/2854 introduced a modern horizontal legal framework addressing switching between data processing services and rendered Article 6 of Regulation (EU) 2018/1807 practically obsolete. The co-existence of those provisions has increased legal complexity for businesses. Therefore, Regulation (EU) 2018/1807 should be repealed.