Published on January 6, 2016 in Industry News

European data protection regulationsThe protection of data is an essential step to ensuring that privacy is upheld. It’s due to this and many other reasons that the European Commission (EC) finally revealed that the EU Data Protection Reform would be moving forward.

The completion of the final draft of the EU Data Protection Reform means that there will be a single system of data protection and privacy across the entire EU. If companies choose to ignore this system, there could be some huge ramifications. 

The positive effect of this reform for customers is that they will be better informed about what is happening to their data and why. The General Data Protection Regulation will require companies to clearly inform customers what their data is being used for and to answer any questions that may arise. If a customer’s data is hacked in any way, companies will also be required to inform customers of this. No longer will customers be kept in the dark with regards to their own data and who has access to it.

Heavy fines for companies across the world

One of the beauties of the online gambling industry is the far and wide reach of its audience. Naturally this reach translates to income from around the world too. However, for companies that ignore the new reform, this could mean huge losses as the EC intends to fine all companies, whether within the EU or not.

The fines that the EC plans to inflict on non-compliant companies could be as high as 4% of the global total turnover. This could easily see companies that do not take the EC’s new reform to heart being forced to pay out hundreds of millions in fines.

While the final draft of the EU Data Protection Reform has been submitted, it will only be accepted at some point in the early part of 2016 and the reform will only be relevant in a couple of years. This gives EU companies and beyond a chance to adjust.