‘Cost increase due to European privacy regulations out of all proportion’

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Protecting personal data is going to cost Dutch businesses an annual estimated 1.1 billion euro due to new European regulations. This is feared by Mr. I. Opstelten, Minister of Security and Justice. This increased burden is more than fifteen times as much as the current costs.
Two umbrella organizations for the Industry and employers in The Netherlands (VNO-NCW and MKB-Nederland) state that “this is out of all proportion”. Thuiswinkel.org shares these concerns.

Preposterous
A single European law is needed for greater harmonisation. This is why Thuiswinkel.org together with VNO-NCW and MKB-Nederland support revision of the current proposals for a regulation. But the increased burden this involves is ‘preposterous’, according to the associations for entrepreneurs who were shocked by this estimated enormous cost increase of more than one billion euro.

Risk-oriented approach
The associations for entrepreneurs feel that the European Commission’s proposal does not distinguish sufficiently according to type of personal data being processed. This will force businesses that process low-risk data to implement severe measures as well. This ‘one-size-fits-all’-approach is probably the main cause of the cost increase.

For this reason the VNO-NCW and MKB-Nederland argue in favour of a risk-oriented approach. The obligations upon businesses should depend on the context of the data being processed. And on the actual risks being run by customers and consumers. This will ensure that costs remain more manageable, according to the associations for entrepreneurs.

Protecting privacy properly is important and it is in the interest of the business world too. However, it must remain in balance with other interests, such as opportunities for innovation and general economic interests, according to VNO-NCW and MKB-Nederland.

Source: www.vno-ncw.nl

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