The European Union commissioner for justice recently called for boosted fines to be placed upon companies which breach the organization’s data privacy laws. In this way, businesses that experience data leakage for any reason could be forced to pay a higher sum if they are found to have violated certain standards handed down by the EU.
Plans for boosted fines
According to Munson, Reding originally drafted data protection plans two years ago that have yet to be adopted by the Commission. Once put in place, the plans call for groups to be fined equal to two percent of annual turnover if found to be in violation of data privacy standards. While the Commission has yet to deploy these increased rates, the European Parliament is recently voted to adopt fines of up to 5 percent of an offending business’s global revenue.
Reding recently released a statement calling for Europeans to “get serious” about data privacy, stating that larger fines for breaches of standards would be a greater deterrent against data leakage in that it would be a “sum much harder to brush off.”
EU reporting window
While the larger fines have yet to be approved, the EU did take steps to shorten the available window companies have for reporting data leakage. According to SC Magazine, the organization put a new policy in place late last year that states that telecommunications and Internet service providers have 24 hours to report data leakage from the moment it is discovered.