Tag Archives: EU

Brexit and the Technology Industry

Puzzle with the national flag of great Britain and European Union on a world map background.The recent decision by Britain to exit the European Union (Brexit) has people asking a lot of questions. Some analysts are pondering British technology regulations and the state of the technology industry post European Union. There are surprising implications that perhaps have not been considered but probably would not have made a difference in the vote.

Silicon Roundabout

An area in East London has been dubbed Silicon Roundabout for the concentration of high-tech firms, particularly start-ups. In a 2013 Guardian article, director of Twilio Europe James Parton cites reasons for locating a hub in London, “…London was a natural choice for our first office outside of the U.S. Language, accessibility to rest of Europe, a vibrant start-up ecosystem, the financial market, talent and flexible business conditions were all contributing factors.” Other areas of Britain have attracted high-tech heavyweights and start-ups alike.

With Brexit, some of those desirable qualities could disappear. Accessibility to the single EU market is in jeopardy, which could result in less than favorable trade arrangements and higher tariffs for companies operating in an independent Britain. A recent BBC article suggests that Berlin, for example, will actively court those tech start-ups and venture capitalists that have been pouring money into Britain. In making her pitch, Cordelia Yzer, Berlin Senator for Commerce and Technology, said, “They are welcome, their talent is more than welcome. It’s a great place to live and we also speak English. Berlin is a place where their dreams can come true.”

High Finance

Another potential issue for tech firms in Britain is access to capital. Start-ups in particular, but all tech firms in general, are capital-intensive operations mainly used for talent and equipment. A recent Reuters article reports that Standard and Poors and Fitch Rating recently dropped their credit rating for the country. This could make it harder or more expensive for companies to borrow capital for expansion or for a start-up. These companies could consider other EU centers such as Berlin or Paris, where funds are less expensive.

Data Privacy

The EU and the U.S. are working on the latest changes to their data privacy agreement. The EU has some of the toughest privacy laws in the world with Germany and France leading the charge in areas such as “the right to be forgotten,” which require companies such as Google to erase all internet history of an individual upon their request. Britain has pushed for less stringent regulations but it remains to be seen whether they will still abide by the EU-U.S. data privacy agreement. That brings up the question of whether data flowing through Britain will still adhere to those standards, or will it be less secure?

Thoughts

The exit is still being planned, though EU countries are pushing to get it done sooner rather than later. With the separation come questions for high-tech companies and consumers. These will be sorted out over time and I will be watching the developments with interest. Can you think of any tech benefits or drawbacks to a post-EU Britain? Let me know your thoughts.

Author Kelly BrownAbout Kelly Brown

Kelly Brown is an IT professional and assistant professor of practice for the UO Applied Information Management Master’s Degree Program. He writes about IT and business topics that keep him up at night.

Implementing Privacy Policy Across Borders

Image of a padlock surrounded by gold stars on a blue field.Digital privacy and security often go hand in hand and the two will continue to be center stage in terms of information management in 2016. As we continue to work through the freedoms and accessibility that come with our connected world, we need to take a broader view than just our community and country. How will digital policy in other parts of the world affect the way we conduct business and how we protect our digital identity? An article this week about emerging policy in the European Union (EU) helped me understand the implications for my own digital persona.

Secondary Use

The EU has developed privacy and data protection reforms that could be enacted within two years. According to the new legislation, a European citizen’s information cannot be used for a secondary purpose without their consent. For example, if I agree to reveal my current location to use Google Maps or to find the nearest Olive Garden, that piece of information cannot also be used to target me for a local gym membership advertisement. Anyone intending to sell personal data would need to know the potential buyers ahead of time and must get permission from all individuals whose data may be sold. Because it will be difficult to limit this to EU citizens it could become wide-ranging. This also has implications for anyone doing data mining and analytics to create and sell information or profiles.

Profiling

Personal profiling is also covered in this recently passed legislation. While not prohibited, it places the burden on the profiler to reveal the information collected and algorithms used to create the portrait. If I eat out every Tuesday night, shop for groceries every Thursday night, and have recently searched online for chef schools, someone could conclude that I am tired of restaurant food and could target me with an ad for a local kitchen store. Before that happens however, I have the right to know just how that data mined profile is created, according to the new legislation. While this helps me as a consumer, as an IT professional I have to be careful conducting any data mining or analytics and now have to be transparent in my work and intent.

In The Cloud

While I applaud the EU for its sweeping reforms I think they will be difficult to enact and enforce. Here is the dilemma for me: how do I reconcile geographical boundaries with cloud boundaries, which by definition are ethereal? For example, as an EU citizen, the data collected about me could be housed on cloud servers in Frankfurt or Mumbai or Buenos Aires or Atlanta. Do the laws refer to me as a citizen living within the European geographical boundaries? Or do they refer to the location of my data? What if I am a German resident but my data is housed and mined outside of the EU? What then?

Thoughts

The European legislation is still at least two years away from being enacted. In that time we need to broaden our thinking beyond government boundaries and create worldwide policies regarding security and privacy. It would be difficult to specifically mark all data belonging to citizens of a particular country, but it would be easier to apply the same standard for users worldwide. It will take a concerted effort to think beyond controlled boundaries and work together to consider what is best for all digital citizens. Do you think we will ever be able to agree on global digital policies? Let me know your thoughts.

Author Kelly BrownAbout Kelly Brown

Kelly Brown is an IT professional and assistant professor of practice for the UO Applied Information Management Master’s Degree Program. He writes about IT and business topics that keep him up at night.