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EU Commissioner Renews Call for Serious Fines in Data Privacy Laws

DW100 writes "Despite Google being fined €900,000 by Spanish authorities and €150,000 in France for its controversial privacy policies in recent months, an EU commissioner has admitted this is mere 'pocket money' to the company. Instead, a new legal regime that would have seen Google fined $1bn for breaching data protection laws is needed to make U.S. companies fear and respect the law in Europe. 'Is it surprising to anyone,' asked Commissioner Viviane Reding, 'that two whole years after the case emerged, it is still unclear whether Google will amend its privacy policy or not? Europeans need to get serious. And that is why our reform introduces stiff sanctions that can reach as much as 2% of the global annual turnover of a company. In the Google case, that would have meant a fine of EUR 731 million (USD 1 billion). A sum much harder to brush off.'"

11 of 162 comments (clear)

  1. Hypocrites by EmperorArthur · · Score: 5, Interesting

    The EU is also responsible for the Data Retention Directive. Worse, most of their spy agencies are just as bad as the NSA. When you combine that with the lack of free speech in many EU countries it doesn't paint a pretty picture.

    They're going to force companies to keep user data on EU soil. Which sounds nice, but that means they can force companies to keep your data for as long as they want and hand it all over to "law enforcement" when you've done something inconvenient. They will then have things like search results censored. (See Google France) I hate to say it, but people in the EU have even less privacy than those of us in the US. Even with/especially because of these privacy directives.

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    1. Re:Hypocrites by abhi_beckert · · Score: 3, Informative

      Worse, most of their spy agencies are just as bad as the NSA.

      When did a european spy agency pay the largest security firm in the world to put a back door in their encryption?

      There is nobody in the world as bad as the NSA.

    2. Re:Hypocrites by moronoxyd · · Score: 4, Informative

      Yep, the Euro has its own problems and can't keep its own house clean, so some good old fashioned attacks on a US company will generate enough good will to keep them relevant in
      the eyes of the people there.

      I'm really getting tired of this.
      You're just plain wrong.
      European companies are fined just as much for this kind of thing.

      The difference is: European companies are used to these laws and break them less often, and fines for EU companies are rarely talked about in the US

      Most of the time this is not about 'oh, it's a US company, let's hit them' but about 'US companies think they don't need to care about local law, so the break it at need to be fined'.

  2. Re:LOL screw the EU by TheRaven64 · · Score: 5, Insightful

    Yes, it sure would suck for EU tech companies to suddenly have a few hundred million customers with a well-defined and established need in a market where the incumbent dominant player has just decided to quit. I am sure that their bank managers would complain about them putting more into their accounts than they were expecting and their politicians would be very upset by all of that money flowing in their economies instead of going to the US.

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  3. Re:LOL screw the EU by TheRaven64 · · Score: 4, Insightful

    Note that I didn't say anything about taxes. Even if the company is avoiding all of its taxes, if its infrastructure and employees are all based in the EU then that's money circulating in the EU, which is of net benefit to the local economy and likely to result in local benefits and even in more total tax revenue. This is a big part of the reason why countries try to give companies tax breaks: even if none of the money is paid directly in taxes, it's better to have it circulate locally than to be sent elsewhere. This worked a lot better when you got a factory employing ten thousand people for your multimillion dollarpound tax break, rather than a datacenter employing 50...

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  4. Fines are a matter for risk management by Opportunist · · Score: 3, Interesting

    Not legal. When it comes to the question whether something "illegal" is done by a company, three things get taken into consideration:

    1. What it costs to avoid the fine (or the profit to be had by ignoring the law, respectively)
    2. Amount to pay when you get caught.
    3. Chance to get caught.

    That's it. And before someone asks, yes, risk management is part of my job, and these are essentially the considerations when it comes to laws. More and more often law changes get dumped on my desk rather than legal because we no longer avoid breaking the law by default, we check whether it pays to break it.

    You'd be surprised how often it does...

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  5. Re:Sounds like an India shakedown by moronoxyd · · Score: 5, Insightful

    Solution: Fine them for random stuff for a lot of money.

    This isn't random stuff.
    Just because the US doesn't know what proper consumer protection and privacy laws are doesn't mean it isn't important.

  6. Re:Sounds like an India shakedown by erikkemperman · · Score: 4, Insightful

    Solution: Fine them for random stuff for a lot of money.

    This isn't random stuff.
    Just because the US doesn't know what proper consumer protection and privacy laws are doesn't mean it isn't important.

    Indeed. It's interesting that a lot of Americans respond to stories like this mostly with "zomg taxes!" It's almost as if you can't even imagine there is really an aspect of consumer protection involved. That says something about what you guys expect from government, methinks.

    Conversely I think this goes some way to explaining why a lot of Europeans don't actually mind taxes, certainly not as reflexively and dogmatically as many Americans seem to oppose them: they believe that these payments, or at least a part of them, will be spent toward their wellbeing.

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  7. Protectionism? by fyngyrz · · Score: 3, Interesting

    Protectionism, yeah! It's worked so well!

    [looks around] notes missing steel industry, almost dead car industry, Detroit, electronics industry, retreating engineering industry, small widget manufacturing, semiconductor manufacture, computer manufacture, clothing manufacture... I'm really not sure that open trade has worked out that well, frankly. For that matter, in the intellectual areas where we maintained some presence for a little longer... not so much today. Companies think nothing of outsourcing anything they can, and countries like India are happy to fill those roles. Of course, we're still pushing paperwork around on Wall street and etc., and we have basic food commodities and some oil resources, but we're really not doing that well overall.

    Within our borders, we have a large workforce, many of whom are unemployed, a large market, and immense natural resources, all within our borders. Economically speaking, it seems to me that a round of protectionism might not be a bad idea at all at this juncture.

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  8. Re:Here is your citation by Sockatume · · Score: 5, Informative

    For those keeping track, all of their highest-ever Cartel fines were against EU companies, in one case jointly with a Korean company. If you read the numbers in the PDF they make everything Google and MS have ever paid with seem like a diner tip.

    Saint Gobain (France)
    Philips (Netherlands) and LG Electronics (Korea)
    Deutsche Bank AG (Germany)
    F. Hoffmann-La Roche AG (Switzerland)
    Société Générale (France)
    Siemens AG (Germany)
    Pilkington (UK)
    E.ON (Germany)
    GDF Suez (France)

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  9. Re:LOL screw the EU by q.kontinuum · · Score: 3, Informative

    Nothing comes close to Google maps.

    HERE (including former Navteq!) has 80% market share in all car navigation systems. The map data is quite good, the routes calculated by here.com are also on par with Google (sometimes slightly better, at other times slightly words). Maybe Google has some more point of interest listed, but this is a matter of market share of the software as a guide rather than only routing. The more people use HERE map data and software as a guide, the more points of interest they will add.

    Everyone else likes it and uses it to their advantage. The EU is working against the wishes and against the interests of its citizens.

    Unfortunately most people do not understand the significance of privacy and free speech. Ask people if they'd sell the right to speak out on one tiny specific topic for 1000€ annually, and you will see that freedom has a price-tag. Nevertheless I think governments should prevent people from selling their privacy and freedom. (Yes, sounds illogical to force people to stay free. I'm still working on that one :-)

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