European Union’s new data policy act called as GDPR (General Data Protection Act) has come in force today, 25th May. It has been implemented across Europe. Now companies will have to change the way they use and handle personal data.
It is going to impact the companies who sell services and products in Europe, especially an Indian call centre targeting Europe or a US website that tracks histories of Europeans.
The companies who have updated their new data policy are safe, but the companies those haven’t managed to do that, are to face fine of €20 million or 4% of their global sale income.
According to Capegemini, 85% of the companies were not ready for the new law to come. Many companies retreated their businesses and services from EU.
“The substantial potential fines and enormous effort involved in becoming and continuing to be compliant will clearly act as a deterrent [to investing in Europe]. Ultimately, they may simply decide it’s just not worth it,” said Chris L. Allyn, a partner at Moye White, a law firm.
The GDRP has replaced Data Protection Act of 1998. Under this law, companies can still send mails, store their data but have a “lawful basis for it” and also respect people who want to have their data deleted.
In the wake of the new law, EU has already slapped big data companies fines— Google with a €2.4 billion ($2.7 billion) anti-trust fine and Facebook with €110 million ($122 million) fine for misleading officials about their WhatsApp takeover.
According to a report by Cambridge Analytical scandal, big companies like Google, Twitter, Amazon and even Facebook have not adhered to even single set of data rules.
“If you are generally good with data protection, you are probably going to be alright with GDPR … my concern is the companies that have never even thought about this and now are scrambling,” said Richard Merrygold, data protection expert.
According to EU, the act is implemented to give more clarity to organizations on legal situation and will make them behave. It is hoped that the act will help companies save 2.3 billion Euros every year.
