It’s been a big week for data privacy. First Google announced its new privacy policy, which will sync user information across all company products, including search results. Then the European Union announced a proposed overhaul of its data protection law. And next, the Federal Trade Commission and the U.S. Department of Commerce are expected to unveil their own communiqués on U.S. privacy policy. (And in case it’s not already on your calendar, Thursday was also Data Privacy Day!)
What does this sudden explosion in attention to data privacy mean for companies?
“I think the first takeaway is just how consequential and pervasive the issue of privacy, information security, and regulation of data protection are to business, commerce, and international trade,” says Alan Charles Raul, a partner at Sidley Austin in Washington, D.C., and global coordinator of the firm’s privacy, data security, and information law practice.
Part of the wave of new policies is just about keeping up with the forward momentum of the digital age. The E.U. had not revised its data protection policy since 1995. For its part, Google—as the Wall Street Journal noted—is increasingly in competition with Facebook for market leadership in leveraging personal data of users.
Because of the global interconnectedness of many online enterprises, a data-policy change in Europe or at Google’s California headquarters should not be viewed too narrowly. If a company in the U.S. is offering services to individuals in the E.U., for instance, it is likely this new proposal would apply to how they handle their overseas customers’ data, Raul says.
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Source: law.com
By: Catherine Dunn
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