[Vision2020] How Europe is dealing with online privacy

[Art Deco]

How Europe is dealing with online privacy
By *Viviane Reding*, Special to CNN

*Editor's note: Viviane
Reding<http://ec.europa.eu/commission_2010-2014/reding/index_en.htm>is
the vice president of the European
Commission <http://ec.europa.eu/index_en.htm>.*

*(CNN)* -- Today, we live in a world of breathtaking possibilities. We can
send instant messages to our loved ones on the other side of the world at
the tap of a finger. We can share vacation photos with friends in real
time. We can entrust our private data to a cloud service provider without
having to worry about storage space.

All this technological advancement helps drive innovation, growth and job
creation. In Europe, we are embracing these changes. But alongside
progress, we are faced with new regulatory challenges.

In a recent poll, 72% of Europeans said they are concerned about how
companies use their personal
data<http://europa.eu/rapid/pressReleasesAction.do?reference=IP/11/742&format=HTML&aged=0&language=EN&guiLanguage=en>.
Worries about online privacy are one of the most frequent reasons for why
people don't buy goods and services on the Web. Our confidence in a digital
future will depend on whether we know that our data will be safely
protected.

Consumers are not the only ones concerned; businesses are, too. Companies
have to navigate 27 sometimes contradictory data protection rules across
the 27 European Union countries. The current rules are antiquated; they
were drawn up in 1995 and predate the widespread use of the Internet.

That is why, last month, I proposed reforming the data protection
rules<http://ec.europa.eu/justice/newsroom/data-protection/news/120125_en.htm>.
Our goal is to make the common market for European goods and services more
accessible to businesses and consumers, boost our economy and set an
international standard for online privacy.

In Europe, the protection of personal data is a fundamental right. This
right is clearly stated in the European Union
Treaty<http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2008:115:0047:0199:en:PDF>and
legislation<http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31995L0046:en:HTML>.
To make this right effective, people need to be in control of their own
data.

So, what will the new rules do?

First of all, people need to be informed about how their data will be used
in clear and simple language: what data are collected, for what purposes
and for how long they will be stored. People need to be able to make an
informed decision about what to disclose, when and to whom.

Second, people have to give explicit consent before their personal data --
contact lists, photos or e-mails -- are used. Companies cannot use it for
purposes other than what was agreed upon.

Third, people will have better control over their own data. They need to be
able to access their own data, to easily take them to another provider or
have them deleted if they no longer want them to be used. This is what I
call the right to be forgotten. We want to clarify that people shall have
the right -- and not only the "possibility" -- to withdraw their consent.

Finally, individuals must be swiftly informed when their personal data are
lost, stolen or hacked. Online security breaches affect millions of people
around the world. Companies must inform the data protection authorities and
the people affected right away, preferably within 24 hours.

But the new European Union rules are not only about helping consumers. They
will also help businesses in three key ways. First, they create legal
certainty by replacing the current patchwork of laws in Europe with a
single set of rules for all 27 European Union countries.

Second, the regulatory environment will be simplified by cutting out red
tape when we introduce a one-stop shop for businesses to deal with
regulators. In the future, companies will have to deal only with the data
protection authorities in the European Union country in which they are
based. This will reduce administrative burdens and will save businesses
about €2.3 billion a year.

Finally, the new rules will provide clarity for international data
transfers. Personal data can be collected in Berlin and processed in
Bangalore. We should improve the current system of binding corporate rules
to make these types of exchanges less burdensome and more secure.

The end result is that companies will be able to sell goods and services
under the same data protection rules to the entire European Union, a market
of 500 million people<http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/3-28072011-AP/EN/3-28072011-AP-EN.PDF>.
What a great business opportunity.

These new rules are designed to stand the test of time. They will give
people control of their own personal data while making life easier for
companies as well.

Online privacy and personal data protection is a global challenge. As
Europe tackles reform, I hope these proposed rules will inspire other
countries that are grappling with privacy issues, like the United States.



-- 
Art Deco (Wayne A. Fox)
art.deco.studios at gmail.com
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