EU rules take aim at illegal data transfer to non-EU governments -Breaking
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© Reuters. FILEPHOTO: Flags of the European Union fly in front of Brussels’ European Commission headquarters, Belgium. March 24, 2021. REUTERS/Yves HermanBRUSSELS (Reuters), – According to the draft rules of European Commission, Amazon (NASDAQ) and Microsoft (NASDAQ), as well other cloud service providers and data processors will have to put in place safeguards to stop non-EU governments from illegally accessing EU information.
According to Reuters, the Data Act was published Wednesday. It outlines the rights and obligations of consumers and businesses in the 27-member European Union regarding the use and disclosure of their data in smart gadgets, machinery and consumer goods.
The rules are part of a set of regulations that aim to curb the U.S.’s tech power and assist the EU with its digital, green and other goals.
Margrethe Vestager, the digital chief at Commission, stated in a statement that she wanted to provide consumers and businesses with more control over data use. She clarified who could access what data and how it was used.
Since Edward Snowden, an ex-intelligence contractor from the United States in 2013, revealed massive U.S. surveillance, EU concern about data transfers has grown.
The Privacy Shield, a transatlantic agreement for data transfers that thousands of businesses depended upon to provide services such as cloud infrastructure and payroll, was deemed illegal by Europe’s highest court.
Both the EU and USA have struggled to come up with a data agreement since. According to the EU executive, these new rules will allow for a large volume of data to be used and are expected add an additional 270 billion euro of gross domestic product in 2028.
Data Act also establishes interoperability standards and contractual requirements for cloud and edge services. This makes it easy for businesses to move to another competitor and allows data to be shared between different sectors.
Connected devices users will have the ability to view data that they generated, typically only available to device manufacturers, and to share this data with companies offering aftermarket services or data-driven innovation services.
During public emergencies like floods and wildfires, companies will have to give certain information to the government.
Before it becomes law, the Data Act must be reviewed with EU legislators and governments.
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