Privacy Emerges As Main Concern For EU Digital Market Overhaul

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The European Union has been working to unify its digital market in order to help facilitate growth in the tech space. However, as the bloc works out a new set of rules which will govern the collective market, many worry that the regulations will stifle innovation rather than encourage it.
Data Protection Fines
Data protection and privacy have emerged as some of the largest concerns for EU regulators. The European Parliament has recommended imposing a fine of €100 million euros or 5 percent of a company's global revenue if data protection laws are broken, while the European Commission has proposed a one percent or €1 million euro fine. This week, European Data Protection Supervisor Giovanni Buttarelli
submitted his own recommendations
which suggested that both proposals be used and that regulators reserve the maximum 5 percent fine for major data breaches.
Help Or Hindrance?
While the privacy laws represent an important issue among European residents, many wonder whether the fines will help the digital market or hurt it. Some worry that such hefty fees will keep new startups from flourishing in Europe as such a fine would essentially cripple a new business. Others say the laws are necessary and even that the fines are too low and won't adequately deter big companies from selling customer data illegally.
What's Next
For now, EU officials seem set on imposing a fine of at least 2 percent of global revenue for companies that violate the bloc's data protection laws. However, the region's policymakers still have a long way to go before the rules governing the newly unified digital market will be rolled out. Regulators are expected to gather again in September for another round of talks to hammer out the details and review new proposals.
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Posted In: NewsEurozoneGlobalTop StoriesMarketsTech
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