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Question
KMN Digital, a Philippines-based healthcare technology company, collects patients' health data (name, medical history, test results) for telemedicine services. Data are stored on KMN's servers in Manila, but KMN contracts a foreign cloud provider with data centers in Malaysia to host and analyze the data for analytics used to improve services for patients in the Philippines and neighboring countries. The data subjects are residents of the Philippines. KMN contends that RA 10173 applies only to processing within the Philippines and that cross-border processing is outside the Act's scope. (a)Does RA 10173 apply to KMN's cross-border processing? Identify the controlling scope rule and apply it to the facts. (b)If RA 10173 applies, classify the actors involved (controller vs. processor) and explain the scope-related obligations that arise for each in light of cross-border processing.