SAP says Europe's new privacy law will hurt startups
Europe's tough new data privacy law is so strict that it could kill off startups trying to operate in Europe, according to German software giant SAP in comments reported by The Financial Times.
Bernd Leukert, head of products and innovation at SAP, says the fines are steep enough to wipe out start-ups with a single violation.
Speaking to The Financial Times, Leukert said: "If you have 25 violations your entire revenue is gone."
The EU overhauled its regulation of how companies collect and use customer data last April. The idea is to give consumers more control over their data and knowledge of how it's being used. A key change is around consent - consumers now have to agree proactively to hand over their data. A pre-ticked box on a web form wouldn't qualify as consent, for example.
Companies found to be violating the rules can be fined up to 4% of global revenues . The law will apply from 25 May next year.
For Leukert, the threat of huge fines will stymie the growth of startups in Europe.
"The more bureaucracy, the more complexity you have in your business segment, the harder it is to grow fast, and speed is what matters these days," he is quoted as saying.
He added that EU laws needed to tally with laws in other jurisdictions. "We might have local regulations, but we need these issues solved on a global basis," he said.
- Some Tesla factory workers realized they were laid off when security scanned their badges and sent them back on shuttles, sources say
- I tutor the children of some of Dubai's richest people. One of them paid me $3,000 to do his homework.
- India not benefiting from democratic dividend; young have a Kohli mentality, says Raghuram Rajan
- Indo-Gangetic Plains, home to half the Indian population, to soon become hotspot of extreme climate events: study
- 7 Vegetables you shouldn’t peel before eating to get the most nutrients
- Gut check: 10 High-fiber foods to add to your diet to support digestive balance
- 10 Foods that can harm Your bone and joint health
- 6 Lesser-known places to visit near Mussoorie