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EU data reform threatens UK's digital economy

02 May 2012 12:42 BST Back
EU data reform threatens UK's digital economy
EU data reform threat to UK digital economy

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An open letter to UK Ministers, signed by the DMA, warns that the proposed European data reform will stifle the UK’s digital economy. 

The proposals “risk chilling the evolution of business models” says the letter, which is also signed by the Federation of Small Businesses, the Coalition for a Digital Economy (Coadec) and other leading small businesses representatives.  

The letter points to a recent survey which found that 87% of businesses will not be able to meet the EC’s proposed rule on data breaches. The rule demands that each business has a nominated employee responsible for customer data security. 

Many small digital businesses are still struggling to meet the demands of the Cookie law, as the compliance deadline of 26 May looms. The proposals will place yet more burdens on businesses and make UK entrepreneurs and start-ups at a competitive disadvantage. 

The letter praises the responsible use of data and the benefits it brings consumers and business, but fears the proposals make for a more restrictive and prescriptive regime. It will deny start-ups, small businesses and retailers the revenue they need to develop their activities.  

The letter is addressed to Minister of State, Lord McNally, Minister for Small Business and Enterprise, Mark Prisk and Minister for Culture, Communications and Creative Industries, Ed Vaizey. 

Read the letter in full

Posted by

Smarayda Christoforou

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