Header Ads

Europe opens up (for Europeans)

Fully Charged
Bloomberg

Hey all, it's Natalia in Brussels. The European Union's flagship privacy law—the General Data Protection Regulation, or GDPR—has restricted what global companies can do with Europeans' data. But now the EU wants to open up access.

This week, the EU will propose new laws to help public and personal data move between businesses and research organizations. This will give them access to data that's normally blocked off due to privacy or IP legislation. Access to this kind of data is critical to many tech companies.

But there's a catch: Only European companies will be allowed to participate in parts of the program, according to an early draft of the regulation. And for public sector data, processing will only be allowed to take place in the EU.

The new rules are part of the bloc's wider data strategy, which aims to boost innovation and research in Europe. The regulations would give companies access to "data pools" in areas like health, finance and mobility. A data pool in the health sector, for example, could help spur advances in preventing, detecting and treating diseases—research that's critical in the midst of a global pandemic. The regulations are also meant to make it easier for people to securely hand over their data for "altruistic" non-commercial research. 

But the requirements to participate—namely that companies be based in Europe—are yet another blow to the American and Asian tech giants that do business in the bloc and are often the targets of Brussels' many tech rules. Global tech proponents have already pushed back against the planned measures, even though they have yet to be unveiled.

If the final version of the rules only apply to European entities, the regulations would be "discriminating against foreign companies," said Eline Chivot, a senior policy analyst at the nonprofit Center for Data Innovation. She added that "requiring data to be stored and processed in the EU will not make the EU any more competitive, it will only encourage other countries to implement similarly protectionist policies and make it harder for EU businesses to access services offered by non-EU companies."

The rules fit into a broader push to achieve what leaders have taken to calling "technological sovereignty," as European companies go head to head with U.S. and Asian players. Officials say the goal of technological sovereignty isn't to hobble foreign giants, but instead to create the conditions for domestic firms to succeed.

Those same officials acknowledge that Europe has lost the race in consumer tech to U.S. giants like Facebook Inc. and Amazon.com Inc. But leaders haven't given up hope: When it comes to business-to-business industries, players like German software giant SAP SE or French IT company Atos SE still have a shot at global preeminence, they say.

To compete, though, those European companies will need one thing U.S. and Asian giants already have in droves: data. —Natalia Drozdiak

If you read one thing

A California district attorney accused Apple Chief Security Officer Thomas Moyer of trying to bribe state officials with 200 IPads in exchange for gun licenses, according to indictments issued Monday, reports Bloomberg's Ian King. Apple said it investigated the matter and found no wrongdoing. 

And here's what you need to know in global technology news

Elon Musk has displaced Bill Gates as the world's second-richest person.

Snap is rolling out a new feature in the style of TikTok that will display popular videos. The company said it will pay $1 million a day to the creators of top-performing posts. 

The chief executive officer of PayPal expects the majority of employees will work at least partially from home even after the pandemic. "I don't think we're ever going back to what was," he said. 

The Foxconn facility touted by President Donald Trump, and then underutilized, has a new contract assembling server components for Google

The U.K. may fine phone companies as much as 10% of sales if they break security rules, including a forthcoming ban on using Huawei 5G equipment. 

 

Like Fully Charged? | Get unlimited access to Bloomberg.com, where you'll find trusted, data-based journalism in 120 countries around the world and expert analysis from exclusive daily newsletters.

 

No comments