The Confederation of British Industry (CBI) – the so-called bosses’ union – has joined the widespread criticism of the proposed shake-up of European data laws, claiming they will burden businesses and threaten innovation.
The condemnation comes in the CBI’s submission to the Ministry of Justice (MoJ), which will form part of the UK Government’s response to the proposals and will be taken into negotiations in Brussels on the final version.
Calling on the EC to revise its proposals, the CBI favours a proportionate, risk-based approach to the scope of data protection regulation that balances the benefits with the costs of changes and their impact on innovative business models.
“We’re concerned that the EC’s proposed data protection reforms will put European businesses at a competitive disadvantage in a global market, by placing restrictive controls and high cost burdens on innovation and investment,” said Matthew Fell, CBI director for competitive markets.
Many business models rely on data-sharing to generate revenue and offer a more individually tailored user experience, he said, such as advertising and subscription-based online music-sharing services, where there has been ground-breaking innovation through partnerships with social networking sites.
“Sharing information about music likes and dislikes online, without sharing the actual content, means millions more customers can now legally enjoy listening to music online – a lifeline for the flagging music industry,” said Fell.
But businesses like these will be threatened, he said. The cost of compliance will burden all industries, deter investment, and ultimately be passed on to consumers.
“Since innovation is a key driver of economic growth, it’s vital that governments here and in Europe support cutting-edge businesses to continue to innovate, before they get left behind by the rest of the world,” said Fell.
Just last week, the DMA warned that UK companies involved in data-driven marketing will lose millions of pounds in profits and extra costs if forced to implement the new EU data laws in their current form.
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