The Economic Effects of Personal Data Protection Reform in the European Company Law

Mike, Nimród
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Many concerns have been raised towards the excessive processing of personal data with introduction of the new technologies, such as Web 2.0 services, Cloud-computing, Smart cards and others. These methods heavily rely on customer’s personal contribution, since the core of the software is based on the mutual trust between the service provider and the user. As consumers were increasingly concerned about breaches of privacy, loss of trust has been translated into lost opportunities and revenues for companies. Recent high profile data breaches have pushed consumers to escape from service providers that did not adequately protect personal data. In this regard, the actual legislation cannot face the challenges of informational society anymore. As it was clearly mentioned by the European Commission in its fact sheet delivered in Brussels on 21st of December, 2015: EU legislation on data protection has been in place since 1995. The Data Protection Directive guarantees an effective protection of the fundamental right to data protection. But differences in the way that each Member State implements the law have led to inconsistencies, which create complexity, legal uncertainty and administrative costs. This affects the trust and confidence of individuals and the competitiveness of the EU economy. The current rules also need modernizing – they were introduced at a time when many of today's online services and the challenges they bring for data protection did not yet exist. With social networking sites, cloud computing, location-based services and smart cards, processing of personal data has grown exponentially. Therefore, the current paper is focusing on the novelties of the Data Protection Regulation, bringing an econ-jurist analysis on the major problematic areas considered by the author.
data protection, data mining, Big Data, privacy, GDPR, Data Protection Regulation