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Europe Finally Agrees Tough New Data Protection Rules Posted Dec 16, 2015 by Natasha Lomas (@riptari) * 0 SHARES * * * * * * * * * Next Story Paytm’s Founder On Its Online-To-Offline Strategy In India Europe Finally Agrees Tough New Data Protection Rules Advertisement Late yesterday European institutions finally agreed on the text of new data protection rules (GDPR), more than three years after new regulation was proposed. The 28 Member States of the European Union will have two years to transpose the provisions of the GDPR into their national laws, with the regulation set to come into force from 2018. There are still a few more stages in the process — although the Parliament, Council and Commission agreed the text yesterday there’s a further confirmation vote tomorrow by the Civil Liberties Committee, and another vote by the European Parliament as a whole in the new year — but the Commission’s aim of finalizing data protection reform in 2015 has been met. I put #GDPR on the table in 2012. @Europarl_EN pushed for it while @EUCouncil stood on the brakes. It took too long, but now there is a deal — Viviane Reding (@VivianeRedingEU) December 16, 2015 Věra Jourová, Commissioner for Justice, Consumers and Gender Equality, dubbed the rules “clear” and “fit for the digital age”. The current European data protection directive was adopted back in 1995 so updating the bloc’s rules to keep pace with seismic shifts in technology is the overarching aim here, along with a parallel push to harmonize regulations across the region with the goal of creating a so-called “Digital Single Market” to simplify operations for businesses selling services in Europe. Commenting on the agreement in a statement, Andrus Ansip, VP for the Digital Single Market, argued the GDPR will “remove barriers and unlock opportunities”. He also tacitly rebutted critics of the new rules. Brussels has been host to a small army of lobbyists during the data protection directive negotiation process, with the U.S. government and tech giants such Facebook and Google actively seeking to water down proposals. Latest Crunch Report * Facebook Sports Stadium Wants to Be Your New Sports Hub | Crunch Report Facebook Sports Stadium Wants to Be Your New Sports Hub | Crunch Report Watch More Episodes “The digital future of Europe can only be built on trust. With solid common standards for data protection, people can be sure they are in control of their personal information. And they can enjoy all the services and opportunities of a Digital Single Market. We should not see privacy and data protection as holding back economic activities. They are, in fact, an essential competitive advantage,” said Ansip. “Today’s agreement builds a strong basis to help Europe develop innovative digital services. Our next step is now to remove unjustified barriers which limit cross-border data flow: local practice and sometimes national law, limiting storage and processing of certain data outside national territory. So let us move ahead and build an open and thriving data economy in the EU — based on the highest data protection standards and without unjustified barriers,” he added. Dropping like a nuclear bomb into the midst of the data protection reform discussions were the 2013 Snowden disclosures, which revealed the extent of U.S. government mass surveillance programs and detailed how intelligence agencies were tapping directly into consumer data held by commercial firms like Facebook. The fallout from those revelations acted as a counterweight to high level U.S. lobbying against strengthening privacy protections. The Snowden disclosures also played a key role in convincing the European Court of Justice to strike down the fifteen year old Safe Harbor transatlantic data transfer agreement, this fall. EC officials are currently engaged in negotiations with their U.S. counterparts to try to hammer out a new deal — with a deadline set for that of January 2016. If you’re interested in geopolitical data protection politics these have been very interesting days indeed. That’s the backstory, but what’s incoming in the new GDPR? It’s worth noting that the full text has not yet been published (Update: it has now been published here) but the general thrust is billed as strengthening individuals’ data protection rights, giving Europeans a greater say in how their data is used — as well as seeking to streamline some elements of compliance for businesses. The new rules will apply to any companies who have customers in the region regardless of whether the company itself is based outside Europe. Some key provisions in the GDPR include: * fines of up to 4 per cent of a company’s global turnover for breaching data protection rules — which for big tech companies like Google could result in fines that run to billions of dollars * liability for data breaches extending to any data processors a data controller also uses — so also applying to any third party entities involved in processing data to provide a particular service, with plenty of implications for cloud-based business models * enshrining a so-called ‘right to be forgotten‘ in law, so when an individual no longer wants their data to be processed by a company, and “provided that there are no legitimate grounds for retaining it”, the data must be deleted. Huge implications for digital marketing * a requirement for companies to appoint a data protection officer if they process sensitive data on a large scale or collect info on many consumers, with an exemption for SMEs if data processing is not their core business activity * a requirement for companies and organizations to notify the relevant national supervisory authority of serious data breaches as soon as possible * parental consent required for children to use social media, with the specific age within a 13 to 16 year old bracket to be set by individual Member States * a one-stop-shop single supervisory authority for data protection complaints aimed at streamlining compliance for businesses * a right to data portability for individuals to enable them to more easily transfer their personal data between services Commenting in a statement, Green MEP Jan Philipp Albrecht, who led the European Parliament’s negotiations, said: “The regulation returns control over citizens’ personal data to citizens. Companies will not be allowed to divulge information that they have received for a particular purpose without the permission of the person concerned. Consumers will have to give their explicit consent to the use of their data.” As with any new law, the devil will be in the interpretative detail around specific clauses and exemptions. And with 28 Member States all needing to interpret and transpose the regulation into their own national law there is inevitably going to be variation in how the GDPR is applied across the region. So one thing is certain: lawyers won’t be short of work as businesses seek to understand how they are affected and what they need to do to ensure compliance — and avoid the risk of a big fine. #EUdataP: First impression of final text: - Level of protection equivalent or partly lower than nat. laws - Enforcement massively beefed up — Max Schrems (@maxschrems) December 16, 2015 Featured Image: Anton Balazh/Shutterstock (IMAGE HAS BEEN MODIFIED) * 0 SHARES * 0 Share * 0 Tweet * 0 Share * 0 * 0 * 0 * * Featured Stories * Europe Finally Agrees Tough New Data Protection Rules Don Baer On Politician's Approach To Technology VIDEO | 12:03 | Breaking News * Werner Herzog On His Documentary Lo And Behold, Cockroach Movies And Moving To Mars Werner Herzog On His Documentary Lo And Behold, Cockroach Movies And Moving To Mars 1 hour ago | Matthew Panzarino * Get Ready For A Smaller iPhone 6s Mini Get Ready For A Smaller iPhone 6s Mini 4 hours ago | Romain Dillet * Netflix Makes Good On Promises To Crack Down On VPNs, But Blocks Are Short-Lived Netflix Makes Good On Promises To Crack Down On VPNs, But Blocks Are Short-Lived 5 hours ago | Sarah Perez * Forthcoming Samsung Galaxy S7 Benchmarks Leak Forthcoming Samsung Galaxy S7 Benchmarks Leak 11 hours ago | Natasha Lomas Latest From Europe * At Davos, Kevin Spacey Predicts That Tech Firms Will Follow Netflix Into Media At Davos, Kevin Spacey Predicts That Tech Firms Will Follow Netflix Into Media yesterday | Mike Butcher * MariaDB Raises $9M More, Michael Howard Named New CEO, Monty Widenius CTO MariaDB Raises $9M More, Michael Howard Named New CEO, Monty Widenius CTO yesterday | Ingrid Lunden * Kickstarter Needs Better Ways To Sanity-Check Complex Hardware Projects, Says Zano Review Kickstarter Needs Better Ways To Sanity-Check Complex Hardware Projects, Says Zano Review yesterday | Natasha Lomas * PieSync, The Belgium Startup That Syncs Contacts Across Cloud Apps, Raises $1.6M PieSync, The Belgium Startup That Syncs Contacts Across Cloud Apps, Raises $1.6M yesterday | Steve O'Hear TechCrunch Newsletters [ ] TechCrunch Daily Our top headlines Delivered daily [ ] TC Week-in-Review Top stories of the week Delivered weekly [ ] CrunchBase Daily The latest startup funding announcements Delivered daily [ ] TC Europe The top European tech stories Delivered weekly [ ] TC Gadgets Top stories about gadgets Delivered weekly [ ] TC Mobile & Apps Top stories about apps Delivered weekly [ ] TC Startups Top stories about startups Delivered weekly [ ] TC Social Media Top stories about social Delivered weekly [ ] TC Asia The top Asian tech stories Delivered weekly [ ] Crunch Network The best from our contributors Delivered weekly View More Enter Address ____________________ (BUTTON) Subscribe Advertisement Up Next Paytm’s Founder On Its Online-To-Offline Strategy In India Posted Dec 16, 2015 CrunchBoard Job Listings * Principal Analyst - Marketing Technology CarMax * Architect - Enterprise Information CarMax * Senior Software Developer - Web Development CarMax * Online Systems Platform Manager CarMax * Team Manager- CRM CarMax More from CrunchBoard Advertisement TechCrunch [crunch-network.jpg] * News * TCTV * Events * CrunchBase About * Staff * Contact Us * Advertise With Us * Send Us A Tip International * China * Europe * Japan Follow TechCrunch * Facebook * Twitter * Google+ * LinkedIn * Youtube * Pinterest * Tumblr * Instagram * StumbleUpon * Feed TechCrunch Apps * iOS * Android * Windows 8 Subscribe to TechCrunch Daily Latest headlines delivered to you daily [X] Subscribe to Subscribe to TechCrunch Daily Enter Email Address ____________________ (BUTTON) Subscribe © 2013-2016 AOL Inc. 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