UK firms face potentially crippling fines if they breach new EU data privacy laws proposed this week (‘Draft Data Protection Bill’). Star, a UK provider of cloud computing services, suggests this knee jerk reaction by Brussels to pending US Patriot Act legislation may stifle innovation at the very time that UK businesses need to focus on funding growth initiatives through innovation.
Clearly consumers can be exposed and need legislation to protect them businesses. However businesses dictate their own contractual terms and compensation remedies should things go wrong with their suppliers and so are already protected under contract law.
UK businesses don’t need more complex legislation, more distraction from their operations, nor the additional costs this will undoubtedly impose upon them. Contrary to EU pronouncements of a €2.3 billion ‘saving’, there is no way the proposed bill can save UK businesses money and although there is some common sense in unifying the rules across the EU they seem heavy handed and will place UK businesses in further discomfort.
In Star’s view, what is required is more education and support to help consumers and businesses do the right things and ensure their data is stored locally by their service providers.
Star has already invested in UK data centres in order to provide cloud computing and communication services to UK businesses in a secure and highly-available manner. While Star passionately defends the right of the consumer to control their data and the way it is stored, we wonder “Who exactly are the new data privacy laws really protecting?”.
Star advises UK businesses to do their homework and make sure their data is always held in UK data centres, is secure to the levels they require and that contracts are well detailed with the appropriate terms to protect businesses and their customer data.
Source: http://www.star.co.uk/
