EU data security rules will be strengthened and made more consistent, under new legislation being drawn up by the EU Justice Commissioner, Viviane Reding. Her proposals cover the full range of internet-based activities, from cloud computing and social media to banking and finance. They even include the consideration of establishing a “right to be forgotten” online.
The Justice Commissioner is currently drafting a bill to update existing EU data protection laws. The new bill will set out robust cross-European rules on data security. Among other things, the proposed legislation will:
introduce a mandatory requirement to notify data security breaches…for all sectors, including banking and financial services.” (from the Financial Times
It is not clear how far EU Data Protection laws can be enforced outside the borders of Europe. The Justice Commissioner is currently negotiating with the US to agree on common standards with the USA.
Ken Clarke, the UK Justice Secretary, is far from enthusiastic about an approach he described as “one size fits all.”
Viviane Reding argued, however, that a consistent EU approach would ease the burdens on businesses that do business across EU borders, by simplifying the requirements that they would have to meet. She believes that cross-border trade would increase from its current low level, as consistent legal standards would improve confidence.
There is a good summary of the proposals and what they will mean for business on mycustomer.com