Over half of global firms expect to be fined for non-compliance with incoming EU data protection regulations
Two thirds of worldwide companies say they would review their business strategies in EU countries in the next year
Over half of global firms expect to be fined for non-compliance with the upcoming General Data Protection Regulation (GDPR), a new report has found.
The report, commissioned by software-as-a-service (SaaS) provider Intralinks and carried out by analyst firm Ovum, surveyed IT decision-makers across Europe, the Americas and Australasia, in order to find out how prepared businesses felt they were for the new regulations.
According to the research, 52 per cent said that they thought GDPR would result in fines for their business - with a similar proportion of companies in the UK (53 per cent), the US (58 per cent) and Germany (62 per cent) believing that it is inevitable that they would be fined.
It is for this reason, that two-thirds of global companies said that they would review their business strategies in some European countries in the next year.
Meanwhile, 68 per cent of respondents claimed that the new regulations would dramatically increase costs of doing business in Europe - with over 30 per cent of companies expecting their budgets to rise by more than 10 per cent over the next two years.
Some of the costs may be associated with hiring specialists in the field: 38 per cent of companies want to hire experts in the subject, while 27 per cent plan to hire a chief privacy officer. It is still up for debate whether or not a Data Protection Officer will be a mandatory requirement for certain businesses.
The survey also found that the majority of respondents believed that the new laws will come as a disadvantage to US companies; 63 per cent of respondents believe the regulations will make it harder for US firms to compete in Europe, while 70 per cent think that the new legislation will favour businesses based in Europe.
"New regulations, such as the GDPR, are seriously worrying global businesses," said Ovum senior analyst Alan Rodger.
"Different jurisdictions are imposing inconsistent and often incompatible mandates for how personally identifiable information is stored, processed and shared. This is already creating confusion and uncertainty, leaving fundamental questions unanswered, such as how to interpret data location requirements. Organisations need technology options that help them react to a rapidly changing regulatory environment," he suggested.
Dr Syed Kamall, conservative Member of European Parliament (MEP), said that it "is essential to balance the protection of civil liberties with creating economic growth and innovation" when it comes to the GDPR.
"Addressing the concerns which have been raised during the process is a key priority, so that we create a regulation which provides opportunity in the EU, creates a legal level playing field, and encourages consumer trust and investment," he said.