23 January 2012

EU introducing uniform data protection rules

Data protection may be getting a major overhaul in Europe this week.

In a new European Union bill to be published later in the week, businesses in the 27-nation bloc will be required to adhere to stricter data protection regulations aimed at protecting consumers, reducing bureaucracy and giving European companies a competitive advantage in the world.

"Personal data is the currency of today's digital market," said European Commissioner Viviane Reding at the DLD conference in Munich. "And like any currency, it needs stability and trust. Only if consumers can 'trust' that their data is well protected, will they continue to entrust businesses and authorities with it, buy online, and accept new services."

The new legislation would create a pan-European regulation, replacing the existing compilation of 27 national codes, and would include sweeping new rules for businesses and rights for individuals.

Ms Reding added: "A company will have to comply with one law for the whole of the EU territory. It will only have to deal with one single data protection authority.

"It will be the data protection authority of the member state in which the company has its main establishment. It will not matter anymore which data protection authority deals with a case.

"All data protection authorities in whatever EU country will have the same adequate tools and powers to enforce EU-law."

Additionally, companies would be required to disclose security breaches within 24 hours of their occurrence. Individuals would be granted the "right to be forgotten" - allowing them to request their information be erased. They would also be given the "right to data portability," which would allow individuals to easily transfer their personal information between companies.

Member states would be allowed to fine companies up to 1 per cent of their global revenues for violation EU rules.

The EU data protection bill is expected to be introduced on Wednesday, but it is still subject to the legislative process and can be revised during the first two years.

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