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The rules on the movement of electronic data around the world need an overhaul, according to a Microsoft executive.Many technology companies, including Microsoft, IBM and Yahoo, use vast data centres to run services over the internet and store data such as e-mail.
However, the rules for data storage can vary widely from country to country.
One might insist that data is kept for a year while another might want it destroyed in six months, said Microsoft senior vice-president Brad Smith.
"If that's the case, it's very difficult to locate a data centre in one country and provide that service to consumers in another country," he said, speaking at the Global Services Conference in Washington in the US.