New European privacy laws can lead to higher fines for companies




The EU member states have reached agreement on penalties in the new EU-wide privacy regulation, reports Reuters. Companies that do not abide by the rules, can therefore be fined up to 2 percent of their annual sales.

Member States would have reached an agreement Wednesday on penalties in a draft text of the EU privacy regulation, which was written by the current EU presidency Latvia, reports Reuters according to diplomatic sources. The document fines between 0.5 and 2 percent of worldwide turnover suggested for companies that do not abide by the rules. If companies do not delete the data on persons who, under the ‘right to be forgotten’ should be removed, she can more than 1 per cent of their turnover costs.

At present Member States of the European Union negotiations on the new EU-wide privacy regulation. Now remains the reference 95/46 / EC directive, also called Data Protection Directive, in 1995. In 2012 came the European Commission due to technological developments with a proposal for modernized legislation. In this example also the “right to be forgotten ‘included. Since a ruling of the Court of Justice of the EU last year, this right, which means that irrelevant data on citizens on the Internet after a certain period must be removed at the request, incidentally, even jurisprudence.

The new rules take the form of a European regulation instead of a European directive. A European regulation is directly applicable in all Member States; a directive must first be converted by a country in national legislation. In the Netherlands, for example the Data Protection Act, the Privacy Act in Belgium. With the new regulation the privacy rules across the EU are harmonized. The proposal would basically be put to the vote already in 2014 in the European Parliament, but because of the large scope continue negotiations still continuing.

Because of the different implementations of the 95/46 / EC Directive in the Member States are not all national data protection authorities the possibility to hand out fines. The regulation would therefore give greater protection authorities power means to ensure that companies comply with privacy laws. Incidentally, the Dutch government already working on introducing a broader penalty powers for the Dutch regulator, the Dutch Data Protection Authority. A legislative amendment is expected to be soon considered by the Senate, gives the Board the ability to impose fines up to 810,000 euros for violations. The ability to impose fines of up to 2 percent of annual revenue, would be especially at big companies like Google and Facebook again represent an effective extension of jurisdiction.

If all parts of the text were adopted, should ministers of the EU Member States in June have given their endorsement. Then the proposal can go to the European Parliament. That maximum penalties of 5 percent of annual sales, so perhaps fines in the European regulation be even higher.


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