Breach of new EU online data rules to carry high fines
(Reuters) - The European Commission proposed new online data privacy rules on Wednesday, putting more responsibility on companies to protect users' information, and said those who breach the code could be fined up to two percent of annual turnover.
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The new rules, which have caused widespread concern among major technology and data companies, are expected to come into force at the end of 2013, once they have been approved by all EU member states and the European Parliament.
One of the more contested elements of the proposed legislation is what Reding has dubbed the "right to be forgotten" - effectively giving an individual the right to have all their data pulled from websites if they wish.
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Some large online companies are more concerned about new guidelines on user consent - which would require companies to secure a user's formal approval to hold their data rather than assuming permission - rather than the prospect of fines.
http://uk.reuters.com/article/2012/01/25/uk-eu-dataprivacy-idUKTRE80O0WW20120125
A future finding against Google for example @ 2% would represent a fine of $800 million.
