Britain must not lose ground in the EU digital economy

Globally data protection is recognised as a key issue and strident efforts are made to protect data collected from individuals and organisations to prevent the myriad frauds and misuses that arise from improper access and use of sensitive and personal data. 

From 25 May 2018 a new robust regulation governing the way personal data may be collected, used and shared is to have effect in the member states of the EU. The new General Data Protection Regulation (GDPR) reforms will replace all previous legislation and will support and protect the growth of the European digital market. 

Once outside the EU such legislation will cease to be applicable to the UK and it is widely held that the UK will need to replicate similar legislation in order to access the digital economy in Europe and to facilitate growth within the UK digital economy. The UK’s regulator for data privacy, the Information Commissioner’s Office (ICO) has already made it clear that similar measures in the UK will be brought in to duplicate such legislation. 

Brexit will have significant implications in the digital economy as Britain will lose its “safe haven” status and in order to continue to process data from the EU on a “free flow” basis into UK based systems a new structure will have to be in place prior to the UK Brexit. This could be managed in a variety of ways, a separate arrangement could be struck with Europe similar to that with America, the EU-US Privacy Shield, or the European Commission makes a decision of adequacy in respect of the UK, or the UK remains part of the EEA.

British business must make comprehensive preparations in order to maintain parity with the new GDPR legislation or businesses will risk being left behind and losing competitive advantage when the new regulations come into force as data sharing, data analytics will be subject to new and more robust constraints and there will be the potential to be exposed to fines enforced for contravention. 

Businesses and data sharing organisations should continue to prepare as if for the GDPR as if any new legislation is drawn up in the UK it will closely follow the GDPR. They should start preparing now and ensure that governance and training are strong features in their preparations.

For more information about how the GDPR will affect your business contact clientservices@giambronelaw.com