The EU is Starting to Crack Down on Data Delivery Services, Threatens Huge Fines for Future Missteps


 

Automated file transfer

The EU is set to crack down on data delivery services in 2015. Europe’s new data law, known as the General Data Protection Regulation, will likely be enforced starting in 2017. These laws regulate everything from notifying breaches, to the right to be forgotten, to how securely data is transferred.

Just how different are these requirements from current ones? Consider this: according to research conducted by security company Skyhigh Networks, of the 7,000 cloud services operating in Europe right now, only 1% are currently compatible with the updated regulations. This means that 99% need to change what they’re doing, or risk being fined.

The fines are no slap on the wrist, either, going up to the equivalent of $134 million. Many companies will need to address a number of complex issues before finding themselves compliant.

Right now, for example, few cloud companies — about 37% — have any provision for data retention. The majority simply keep data indefinitely. Under the new law, however, individuals will have the right to request that data concerning them is deleted.

The right to be forgotten rules have already been a headache for Google, which was forced to comply with these rulings after a case regarding their search results went to court. The courts ruled that Google needs to honor the requests of people who would not like information about them to come up in search results. After Google lost the case, they received about 10,000 requests — with more on the way.

Cloud companies are going to need to take a second look at everything from automated file transfer software, to how they secure file transfer services, in order to make sure they can pass future compliance laws. Cloud providers and others, in turn, need to step up their solutions in order to make sure they are adequately protecting their clients. In the Skyhigh research, it’s worth noting that they found that only 3% of cloud services currently enforce secure passwords — an important, basic tool for ensuring safe data delivery services.

Do you think European cloud companies and other businesses handling sensitive information will be able to ensure safe data delivery services a year from now? Let us know in the comments.

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