Will new EU internet laws help or hinder business?
Tuesday, January 31st, 2012European Commissioner, Viviane Reding announced widely expected proposals last week on the reform of European data protection laws. These new proposals intend to strengthen individual’s rights to data protection and put them in control over what data they allow companies to store.
They will have a significant effect on how businesses operate on the internet and have been met with a mixed reaction as companies tried to assess the implications for their future operations.
One of the aspects of the proposals that generally met with a positive response was the intention to unify data protection legislation across the entire community. Currently, each individual state of the 27 member EU has its own regulations making it expensive and confusing for companies operating across the EU. According to the EU, the imposition of a single law could lead to major cost savings and less red tape for companies operating on the internet.
However, some companies have already expressed concerns that, in general, the legislation will increase obligations on businesses which, in turn, will increase costs. Others have stated that some of the proposals could even be technically impossible to implement.
The proposals will not just affect EU businesses, but also global companies who offer internet services to European consumers. This has drawn harsh criticism from the United States where the proposals were described as being excessively prescriptive.
Future legislation that places too many burdens on internet companies had the potential, critics said, to hinder the development of the internet and restrict its ability to continue as a major driver for economic growth. The implications for internet marketing have yet to befully explored.

