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Apple has begun storing Russian user data in Russia in compliance with Russian data storage lawsI don't see how this is inherently bad.
First of all Russia's intelligence agencies get access to any data belonging to Russian citizens anyway, simply because those citizens are under Russian legislation.
I don't know the details, however note that the GDPR also imposes restrictions on exporting the data of EU citizens outside the EU.
For example exports are only allowed in countries or territories that have enough safeguards for the protection of that data.
This is important for privacy, for example if our local security agencies mishandle my data, I can sue them, I can vote for the opposition, I can convince other people to do the same, etc, however if a foreign agency mishandles my data, like those of Australia, I can do absolutely nothing about it.
And from the state's point of view, having access to the data of your citizens is also a matter of national security. I can definitely see why a rival of the USA wouldn't want the data of its citizens stored on servers located in the USA.
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Companies that want access to the Australian market will succumb to Australian demands of course.
The problem for Australia however is that their local companies will get hurt in the international marketplace.
For example Fastmail, which competes with Google by promising better privacy, is now in a very awkward situation of having to explain how this bill is affecting them and what they are doing about it. In a market dominated by Google, hurting your local companies that compete with Google is downright stupid and will have an effect on their economy.