International business groups are stepping up pressure on the
European Commission to rethink proposals to regulate the way
businesses share data across international borders.
Businesses are concerned that Europe has gone beyond existing data
protection laws by asking companies to sign "model contracts"
governing the way they process data outside of the European
Union.
Seven international business groups, including the CBI and the
International Chamber of Commerce, have joined forces to campaign
against the proposals, in one of the most concerted lobbying
campaigns on data protection to date.
The model contracts are designed to protect the privacy of European
citizens when companies share data with overseas branches or use
overseas contractors to process data for them.
However, business organisations believe the model contracts are too
complex for companies to implement and will place heavy burdens on
European companies, putting them at a competitive
disadvantage.
Christopher Kuner, data protection lawyer, at Morrisson &
Foerster, which is representing the organisations, said, "Europe is
the only region that has these model contracts. It has more fully
developed restrictions on data transfer than other regions. It is
really an additional burden."
The business groups presented the commission with an alternative
model contract that, they said, will still protect privacy and yet
be simple enough for businesses to implement.
One of the key changes has been to remove a clause in the EC's
model contract that requires businesses to sign a standard
indemnity clause, something that they find hard to accept, said
Kuner.
The business groups said parties signing the contracts should be
able to resolve disputes in court or through the Data Protection
Commission, rather than being forced to go through potentially
time-consuming mediation and arbitration.
"We are going for a speedy resolution. I think it is fairly urgent.
Business needs a solution now," said Kuner.
Separately, UK investment banks are pressing the EC to approve a
draft data protection policy that will allow multinational
companies to transfer data between overseas branches without
signing multiple contracts.
Further information
Model contracts:
www.europe.eu.int/com/internal-market/en/