European Parliament committee backs data protection reform

The EC says that the reform is needed because some 72% of European internet users are worried that they give away too much personal data. "They feel they are not in complete control of their data. Fading trust in online services and tools holds back the growth of the digital economy and Europe's digital single market," it stated. To address these concerns, the European Commission proposed a comprehensive reform of the EU's 1995 data protection rules on 25 January, 2012 to strengthen online privacy rights and boost Europe's digital economy. The Commission's proposals attempt to update and modernise the principles enshrined in the 1995 Data Protection Directive to bring them into the digital age.hideThey include a proposal for a regulation to set out a general EU framework for data protection and a proposal for a directive on the protection of personal data processed for the purposes of prevention, detection, investigation or prosecution of criminal offences and related judicial activities, explained the EC. The Commission said this week that the ITRE Committee's positive opinion, drafted by Member of the European Parliament Seán Kelly, is the latest step towards a 'swift adoption' of the proposed legislation. The Committee's opinion covers the draft general Data Protection Regulation. It will now be submitted to the Civil Liberties, Justice and Home Affairs Committee (LIBE). This committee will consolidate all the amendments submitted so far and vote on its own report at the end of April. "Today's vote by the European Parliament's Industry Committee is an important signal that industry needs uniform and clear data protection rules to take advantage of our Digital Single Market," said Vice-President Viviane Reding, the EU's Justice Commissioner. "This reform is good for business in Europe: one data protection law for one continent, a regulatory one-stop shop with one national data protection authority in charge and a mechanism allowing the European Commission to act as a backstop and ensure consistent application of the rules. This will ensure effective protection of people's personal data and help to boost economic growth, innovation and job creation in Europe," she added. The ITRE Committee backed the main innovations of the Commission's data protection reform. These were: The need to replace the current 1995 Data Protection Directive with a directly applicable regulation that covers the processing of personal data. The EC believes that a single set of rules on data protection, valid across the EU, will remove unnecessary administrative requirements for companies and could save businesses around €2.3bn a year. The need to have a 'one-stop shop' for companies that operate in several EU countries. The Commission believes that its proposal would cut red tape through the introduction of a one-stop shop for businesses to deal with regulators. Under the plans, companies would only have to deal with the data protection authorities in the EU country in which they are based. The need for a 'consistency mechanism' designed to ensure a uniform application of the EU rules and put an end to 'regulatory fragmentation and inconsistent application of the rules to help accelerate the Digital Single Market'. The EC said that the mechanism is crucial to ensure that the Commission can act as a backstop when regulators fail to agree a common line. The need to pay special attention to Small and medium-sized enterprises (SMEs) which represent 99% of all European businesses. The Commission's proposal already provides for a number of exemptions for SMEs (below 250 employees). This includes, for example, an exemption from the need to appoint a data protection officer or the duty to put together documentation on data processing activities. The ITRE Committee voted to expand this approach. Following the ITRE Committee's opinion, the Employment (EMPL) Committee will vote on its own opinion on the reform proposals. The LIBE Committee (which is the lead committee) will then vote on its own report at the end of April. The EC said that it will continue to work 'very closely' with the European Parliament and Council to support the co-legislators to achieve a political agreement on the data protection reform by the end of the Irish Presidency. The next discussion by ministers of the proposed data protection rules is set for the upcoming Justice Council on 8 March.

European Parliament committee backs data protection reform

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