In an era where digital developments have crucially undermined the thin line between what is private and what is public, data protection is meant to protect the individual’s information from being used in an exploitive manner. With this in mind, the European institutions have reached an agreement on a General Data Protection Regulation (GDPR).
The free movement of persons throughout the EU has increased consumers’ exposure to several EU businesses, overlapping national borders. This has forced businesses to comply with fragmented and outdated data protection laws.
The new legislation converges much of the previous fragmentation, precisely through the use of a regulation as a legal tool instead of a directive. This ensures EU-wide legislative harmonisation through the direct application of the new regulation into the national legislation of EU member states.
The new rules aim to make compliance with data protection law much easier, simpler and more efficient due to the decreased compliance costs involved, allowing businesses more leeway to increase their competitiveness. Moreover SMEs can grow and internationalise throughout the EU without the fear of having to handle different data protection standards when operating in different member states.
Furthermore, the new regulation introduces a one-stop shop which is intended to be the first contact point for businesses and consumers. It also aims at simplifying procedures and act as a centralised authority, responsible for administering data protection in the EU.
The simplification of procedures are estimated to save a total of €2.3 billion per year in compliance costs, according to the European Commission.
Consumers have also been empowered by the new regulation, obtaining the right to be forgotten, the right to access one’s information, as well as the way consent is provided. While this constitutes additional costs to business, we recognise the strong need to encourage consumers to have further trust in online services. Consumer confidence is paramount in stimulating growth in the digital economy.
The new rules aim to make compliance with data protection law much easier, simpler and more efficient
The discussions on the GDPR in European institutions were rather complex. Originally, the European Parliament recommended that almost all SMEs would have had to engage a data protection officer in order to ensure that they are in line with the new legislation.
However, through intense negotiations, a deal was reached ensuring that the engagement of a data protection officer is strictly restricted to those firms whose core operational activities consist of handling significant amounts of sensitive data. Firms whose core business activities do not consist of data processing will now be exempt from this obligation.
From a business point of view this was a very positive outcome and a decision that makes practical sense. As part of its reinvigorated lobbying strategy, the GDPR was also the Malta Business Bureau’s first attempt at targeted legislative lobbying in Brussels with European legislators, and actively contributed to the conclusions reached.
In the run up to the agreement, the MBB met a large number of MEPs sitting on the Civil Liberties Committee in the European Parliament – the Committee which has been dealing with the negotiations on the Parliament’s behalf.
While the MBB had always followed business-related EU policies through its European partners, this was the MBB’s first shot at influencing legislators, and it will certainly not be the last.
We have shown that it is indeed possible for organisations from small member states to play an active role in the EU’s legislative process, rather than sit and wait for the outcome.
The MBB is currently active on other initiatives well underway in the areas of company law and e-commerce, emanating from the EU’s single market and digital single market strategies, and has met 64 MEPs in the process.
We will remain committed to continue following sensitive issues that will affect Maltese businesses and intervene where possible to ensure that enterprises continue benefitting from the EU single market through a fair level playing field and a competitive business environment.
Mario Spiteri is president of the Malta Business Bureau.