German Companies Heavily Reliant on International Data Transfers Amidst Regulatory Uncertainty

Despite increasingly stringent data protection regulations, international data transfers remain essential for the vast majority of German companies. A recent study by Bitkom, Germany’s digital association, highlights the critical dependence on global data flows and the growing need for a clear legal framework to ensure continued competitiveness.

The Indispensability of International Data Transfers

According to a Bitkom survey of 603 companies with 20 or more employees conducted between weeks 30 and 35 of 2025, 62 percent of German companies transfer personal data to countries outside the European Union. This reliance is driven primarily by the widespread adoption of cloud services, digital communication tools, and the need for global IT and security support.

The primary reasons for these transfers include:

• Access to cloud platforms (96 percent)
• Use of communication and video conferencing systems (90 percent)
• Utilization of global service providers for 24/7 security support (66 percent)
• Employing billing or database management services that transfer data internationally (38 percent)
• Having company locations outside the EU (31 percent)
• Collaboration with partners outside the EU, particularly in research and development (18 percent)

Economic Consequences of Disruption

The study reveals that ceasing international data transfers would have significant economic repercussions for German businesses. 78 percent of companies anticipate substantially higher costs and a loss of competitive advantage compared to providers located outside the EU. Concerns also include disruptions to global supply chains, limitations on product and service offerings, and the potential loss of international security support.

Call for Legal Clarity

Given this substantial dependence, a significant majority (78 percent) of companies are urging policymakers to establish a more certain legal framework for international data transfers. The current, often perceived as unclear, legal landscape creates uncertainty and hinders long-term planning. Bitkom emphasizes that international data transfers are fundamental to maintaining the competitiveness of the German economy in a globally connected digital world. Bitkom states that the debate isn’t about software selection, but about the fundamental economic viability of German businesses.

The United States as a Key Destination

The United States is the primary destination for data transfers from Germany, accounting for 61 percent of all outbound data flows. Other significant destinations include Great Britain and India. Companies predominantly rely on standard contractual clauses (80 percent) as the legal basis for these transfers, alongside internal group data protection rules (23 percent), the EU-US Data Privacy Framework (21 percent), and, to a lesser extent, consents (12 percent). Approximately 19 percent of companies are currently working to adapt existing data transfers to comply with evolving or changing regulations.

Bitkom’s Role and Membership

Founded in 1999, Bitkom represents over 2,200 companies within Germany’s digital economy, with a collective turnover of approximately €140 billion. Its membership includes over 1,000 SMEs, half of the 40 DAX companies, over 500 startups, and virtually all global players in the digital sector. Bitkom advocates for the digitization of the economy, society, and public administration, pushing for initiatives like faster rollout of gigabit networks and digital infrastructure.

As highlighted by Bitkom in November 2025, German companies are increasingly dependent on technologies and services from abroad, with a growing concern regarding trust, particularly in the United States and China.