ARTICLE
16 August 2021

Conventional Jurisdictional Rules And Internet Disputes (Legal Alert 152)

Ai
Andersen in Egypt

Contributor

Andersen in Egypt is offering comprehensive and varied legal and tax services to companies and individuals, in addition to financial advisory services licensed by the Egyptian Financial Regulatory Authority (License No. 47), through our team of 9 partners and more than 70 of the top lawyers and consultants.
Almost forty years ago, we welcomed the internet with open arms.
Egypt Media, Telecoms, IT, Entertainment
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Almost forty years ago, we welcomed the internet with open arms. Little did we know, it would transform our world like never before. Today the internet has developed into a globally connected network that infiltrates every aspect of our daily lives. While it has undoubtedly left its mark on every profession, it has especially revolutionized the business world. Gone are the days of paper advertising, local customers, and physical workplaces. Businesses now exist in the virtual realm and have access to a plethora of global customers. Sales and business dealings span the international market, pulling in profits from all over the globe. However, such expansion does not come without a price. Having transcended national borders, internet businesses now face the dilemma of conventional jurisdictional rules. In an interconnected global market, internet disputes are a daily occurrence. Laws unquestionably apply within a nation's borders, but how can states regulate and govern a new, rapidly developing abstract world of the internet business before it becomes too powerful to control? 

There are several roadblocks that countries face in the path to exercising jurisdiction over internet disputes. In order to proceed, states must first locate the internet conduct in question and discern whether it has an "effect" on the nation. In addition, states must also have a legal framework in place that addresses such internet disputes. Yet, even if such legislation is in place, there is no escape from the possibility of conflicting laws. Cyberspace blurs the lines of geography and meshes nations together in an attempt to render law powerless. Nevertheless, several countries have taken steps to gain legal control over cyberspace. The US has endeavored to remedy this by granting its courts the ability to exercise jurisdiction over parties anywhere in the world, based solely on Internet contacts with the state. It has also implemented a wide variety of state and federal laws promoting cybersecurity.

Contributing to the effort is Egypt, the country has taken several steps to secure cyberspace, consequently reducing internet disputes caused by cyberattacks. It has replaced its outdated laws with new, modernized legislation that tackles cyber crimes. Under the Anti-Cyber and Information Technology Crimes Law (Law No. 175 of the year 2018), crimes committed through technology are harshly punished with hefty fines. Egypt also ratified Data Protection Law No. 15.,  a law that penalizes the sharing of data and regulates overseas data transfers according to international GDPR regulations.  By executing this law, Egypt is effectively shielding both domestic and foreign investors from data fraud. Through these efforts, Egypt is not only paving the road to a safe, integrated digital economy that is capable of taking the country to unprecedented economic heights but is also joining the world on its mission to bring law and order to the domain of the internet business.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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