Why NSA Overreach Is Bad for Business Too

[Commentary] President Barack Obama has an opportunity to get a difficult international conversation about privacy protection back on track with the speech on the National Security Agency and the recommendations of the board he appointed to review it.

The international firestorm Edward Snowden’s disclosures ignited has damaged America’s brand and the brand of US companies -- and that has cost real money, with estimates of losses to ranging from $25 billion to $180 billion over three years. Surveys and individual statements express increased reluctance on the part of foreign businesses to entrust data to US cloud services and technology providers. These sentiments have been reflected in reports of business lost by American companies and an uptick in the businesses of non-US Internet hosting services. American Internet and technology companies are crying ouch. The losses bring home just how important the global flow of digital information and trust in the protection of private information are to today’s economy. The President needs to affirm American privacy values forcefully.

In the White House’s 2012 blueprint laying out a framework for consumer privacy, President Obama’s foreword was a strong affirmation of ways that privacy is embedded in American values and law. “Americans have always cherished their privacy,” he wrote, noting, “Privacy has never been more important than today in the era of the Internet, the World Wide Web, and smart phones.” His signature on the document provided a powerful calling card in discussing privacy overseas. He needs to speak with that voice.

[Cameron Kerry is visiting fellow at the Brookings Institution, visiting scholar with the MIT Media Lab and formerly general counsel and acting secretary of the United States Department of Commerce.]