Panama has committed to covering cross-border data flow in the Free Trade Agreement between the United Mexican States and the Republic of Panama (Art. 14.10).

The Personal Data Protection Law provides a comprehensive data protection regime. The law applies to any person in charge of data processing who is domiciled in Panama and to any foreign companies' ongoing commercial online activities targeting the Panamanian market.

According to Articles 2, 3 and 6 of Law No. 51 of 2009, telecommunications service providers and other covered communications service providers established in Panama are required to retain certain subscriber, traffic and location data generated in the provision of their services for six months. The data covered includes information identifying users, telephone numbers, IP addresses, the date and time of Internet connections, the origin and destination of communications, their date, time and duration, the type of communication or service used, mobile-device identifiers such as IMSI and IMEI, and the geographic location of the cell from which a mobile communication originated. Pursuant to Art. 6, upon request by a judicial authority concerning specific data, the retention period may be extended for up to an additional six months. Art. 7 provides that these obligations do not authorise the interception, recording or access to the content of communications.

Law No. 51/2008 establishes a safe harbour regime for intermediaries for copyright infringements. Arts. 88-91 of the Law provides a safe harbour that shields network operators, service providers, online trade service providers and storage service providers from responsibility. In addition, a safe harbour provision forms a substantial part of the intellectual property chapter in the FTA entered into between the United States of America and Panama (Art. 15.11, para. 27).

Law No. 51/2008 establishes a safe harbour regime for intermediaries beyond copyright infringement. Arts. 88-91 of the Law provides a safe harbour that shields network operators, service providers, online trade service providers and storage service providers from responsibility.

Art. 4 of Law No. 51/2009 establishes that mobile telephone operators, their subsidiaries and authorised agents that commercialise services with activity systems through the prepaid card modality must keep a record of the identity or general information provided by their customers who acquire a telephone unit or smart card (SIM) with such payment modality.

It is reported that local authorities declared a state of emergency in Panama’s province of Bocas del Toro amid unrest. Following this declaration, Panama’s telecommunications regulator, the National Public Services Authority (ASEP), issued a letter on 20 June 2025 instructing telecommunications and internet service providers to suspend the provision of mobile cellular telephony and internet services in the province. The suspension was initially expected to remain in place until 25 June 2025, but the government subsequently extended the measure until 30 June 2025.

Pursuant to Art. 18 of Executive Decree No. 81/2017, the export or re-export of any goods included in Panama’s National Harmonised List requires economic operators to register with the National System for the Registration of Economic Operators and the Tracking and Inventory of Dual-Use Goods and obtain a prior licence from the competent authority. The Technical Committee for Safe Trade and Transport may exempt economic operators considered to present a low risk from the prior-licence requirement.
Under Art. 1 of Resolution No. 001/2018, Panama adopts the European Union Control List of Dual-Use Items, including its subsequent amendments, as the National Harmonised List of Dual-Use Goods of the Republic of Panama. Art. 2 makes the Technical Committee responsible for updating and disseminating the national list in accordance with the latest official EU list. The list includes controlled products, software and technology falling within categories such as electronics, computers, telecommunications and information security. Coverage depends on the technical specifications, thresholds and exemptions established for each control entry and does not extend to every product falling within those general categories (see Regulation (EU) 2021/821, which repealed and replaced Regulation (EC) No. 428/2009, as subsequently amended and implemented by Regulation (EU) No. 1232/2011 and Delegated Regulation (EU) 2018/1922).

There is an obligation for passive infrastructure sharing in Panama to deliver telecom services to end users. It is practised in both the mobile and fixed sectors based on commercial agreements. Under Arts. 3–8 of Executive Decree No. 138 of 1998, suppliers must provide requesting telecommunications operators with access to and shared use of infrastructure, including poles, conduits, inspection chambers, shelters and towers, where technically feasible and subject to fair, reasonable and non-discriminatory conditions. Access may be established through commercial agreements or mandated by ASEP where the parties fail to reach an agreement.
Later in 2009, this framework has been supplemented by Resolution AN No. 2848-Telco. Under Art. 3 of its Annex A, concessionaires and infrastructure installers must permit the shared use of towers and structures supporting telecommunications antennas where technically feasible.

Art. 21 of Law No. 31 of 1996 authorises majority private foreign participation in the capital of telecommunications companies. However, a foreign government, or an enterprise or consortium dominated, controlled or majority-owned by a foreign government, may not provide telecommunications services or hold a direct or indirect majority interest in a telecommunications operator.

The government owns 49% of the shares of Cable & Wireless Panama, S.A., a Panamanian telecom company governed by private law.

Panama does not mandate functional separation for operators with significant market power (SMP) in the telecom market. However, there has been an obligation to separate the accounts since 1997. Pursuant to Art. 86 of "Executive Decree No. 73, which implements Law No. 31 of 8 February 1996 on telecommunications regulation in Panama", telecommunications service concessionaires must submit audited financial statements to the Regulatory Authority within three months of the end of their fiscal year. Under Art. 86.1, concessionaires that provide more than one telecommunications service may comply by either maintaining separate accounts for each service, or maintaining separate accounts by type of service (Type A and Type B). In addition, concessionaires providing mobile cellular telephone services are required to maintain separate accounts for that service.

In Panama, the legal basis for telecommunications licensing is set out in Law No. 31 of 8 February 1996 (Telecommunications Law) and its principal implementing regulation, Executive Decree No. 73 of 9 April 1997, which operationalises the statutory framework. The Telecommunications Law governs the installation, operation, and provision of telecommunications networks and services through concessions and authorisations, and it allocates core supervisory and enforcement powers to the sector regulator, the National Authority for Public Services (ASEP).
The Law establishes a dual regulatory classification. Type A services may be granted by the State under temporary exclusivity or to a limited number of concessionaires (Art. 7(1)), whereas Type B services are generally provided under conditions of free competition (Art. 7(2)). Consistent with this classification, ASEP identifies Type A services, including personal communication services and mobile services, while Type B services encompass a broader range of activities, including, inter alia, basic international telecommunications and fixed and mobile radio communications, among others.
In addition, Art. 1 of Law No. 36 imposes sector-specific constraints on licensing in mobile telephony by limiting the number of concessions to operate mobile telephony services to three, thereby consolidating the market structure.

Under Art. 13 of the consolidated text of Law No. 22 of 2006, introduced by Law No. 153 of 8 May 2020, contracting entities acquiring goods and services must first consider the viability, availability and quality of goods and services produced in Panama.
In addition, Art. 7 of Executive Decree No. 439 of 10 September 2020 requires contracting entities to specify in the tender documents that the goods or services must be of Panamanian origin, production, processing, manufacture or provision where the procurement falls outside the applicable coverage of Panama’s international agreements, taking into account the relevant monetary thresholds, covered entities and goods or services.

Panama has not appended the WTO Telecom Reference Paper to its schedule of commitments.