EU Data Rules Worse Than SOPA?

Last week, the European Commission (EC) released a draft revision of its 1995 data protection rules for the stated purpose of strengthening online privacy rights and Europe's digital economy. But the rules threaten the viability of data-driven businesses, from Google to credit bureaus, critics contend.

The EC says that a single streamlined set of rules will save businesses billions in administrative work. The rules require: notification of national data authorities as soon as possible following a serious data breach; explicit rather than assumed consent for data collection; easier consumer access to data and easier transfer of that data to other providers; and support for a "right to be forgotten," which gives consumers the option under some circumstances to have their data deleted from third-party service providers. The fine for violating these European Union (EU) data rules is substantial: up to 1 million Euros or up to 2% of global annual revenue. Under this regime, Google's collection of Wi-Fi network data through its Street View cars, disclosed in 2010, could have cost the company $586 million, had the EU chosen to punish the company to the full extent of the law.