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Tech Giants Brace for Europe’s New Data Privacy Rules

nytimes.com

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Re: Tech Giants Brace for Europe’s New Data Privacy Rules

#5

Post by thanksgiving »

thisisit wrote: post #2

> If companies do not comply, they could face fines totaling 4 percent of their annual revenue. I am curious on how did they arrive at the 4% cap?

I'm just glad it is based on revenue instead of profits. I think corporate taxes should be the same way.

I imagine the four percent had to be large enough to motivate compliance without scaring people away and further fueling anti-EU sentiment? I'm just speculating.

Re: Tech Giants Brace for Europe’s New Data Privacy Rules

#6

Post by raverbashing »

vfulco wrote: post #4

So does this mean certain countries (non EU) are shut out of EU completely? Thinking of some Asian titans that share everything with their governments.

Follow the rules and you're allowed to operate

Now I wonder what might happen if a company says it's not sharing then their data is found somewhere (yes, I'm thinking about the Asian companies)

I think the biggest thing about the GDPR might be encouraging companies to not hoard data and not ask for lots of personal data "just because"

Re: Tech Giants Brace for Europe’s New Data Privacy Rules

#7

Post by bencollier49 »

raverbashing wrote: post #6
vfulco wrote: post #4

So does this mean certain countries (non EU) are shut out of EU completely? Thinking of some Asian titans that share everything with their governments.

Follow the rules and you're allowed to operate Now I wonder what might happen if a company says it's not sharing then their data is found somewhere (yes, I'm thinking about the Asian companies) I think the biggest thing about the GDPR might be encouraging companies to not hoard data and not ask for lots of personal data "just because"

A fine of up to 4% of total annual global turnover, IIRC.

Re: Tech Giants Brace for Europe’s New Data Privacy Rules

#8

Post by yardie »

vfulco wrote: post #4

So does this mean certain countries (non EU) are shut out of EU completely? Thinking of some Asian titans that share everything with their governments.

If they do know business in the EU then this rule is effectively toothless. But most companies that do more than the bare minimum of business in the EU will have a local office and if that is the case then they will follow it.

Re: Tech Giants Brace for Europe’s New Data Privacy Rules

#9

Post by trampypizza »

thisisit wrote: post #2

> If companies do not comply, they could face fines totaling 4 percent of their annual revenue. I am curious on how did they arrive at the 4% cap?

I think it was a balancing act. Currently in the UK, the Information Commissioner's Office can fine up to a maximum of £500,000. The concern was that for larger organisations, the cost of compliance with the Data Protection Act (1998) was higher than any potential fine handed out by the ICO. So by placing the limit at 20m Euro, or 4% of annual revenue, they give the legislation adequate 'bite' to persuade boards that investing in systems and people to ensure data privacy is upheld is worth it. However, the EU doesn't want to drive business away entirely, so the figure was selected to ensure that it was punitive, but not to the point where organisations would seriously consider shutting down in Europe, or restricting services to European consumers.
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