Brexit is expected to have an impact on the unrestricted movement of individuals. However, there is another serious issue due to the leave vote.
It could hinder the movement of data to and from the UK to the rest of the continent. This could have a negative impact on the business. This originates from the EU and the UK’s probable departure in data safeguard laws post-Brexit.
According to Chris Jeffery, Head of UK IT, Telecoms and Competition at law firm Taylor Wessing, “The uncertainty as to whether the U.K. will be considered safe for data flows relating to citizens from the rest of Europe is causing concern, and making some companies consider whether data center capacity in mainland Europe is the safer bet.”
The service-oriented economy in the UK would indicate that the transfer of data across borders is central – impact sectors from automobiles to financial services.
At present, the UK has agreed to execute the EU’s General Data Protection Regulation (GDPR). It is expected to come into effect in May 2018. The main objectives of the GDPR are to enable individuals to regain control of their personal data and reduce red tape for global businesses by standardizing all the rules within the 28-country bloc.
Though businesses are getting ready for GDPR, their efforts could be undone in the future.
The impact of Brexit on cross-border data transfer would have a far-reaching effect than initially anticipated. If a firm based in the UK monitors the activities of people in the EU, it would be subject to the data protection law in the EU.
In order to secure the UK’s role in international data flows and as promote itself as a location to initiate & expand the digital businesses, several experts believe that the nation must be in sync with the EU’s GDPR.
It would be prudent on the part of businesses to focus on facilitating compliance with the EU data protection framework with regard to the future.