While the proposal promises a closer harmonisation of data protection rules across EU markets, its provisions in their current form would undercut the advertising-funded business model that drives the digital economy as we know it. In turn, they would act as a brake on innovation, competitiveness and growth in Europe.
The WFA's key concerns centre on three core elements of the new proposal:
The digital economy is essentially powered by advertising revenue, which funds content as well as investment in people and innovation.
All online users today benefit from free services such as news, email and video streaming, for example. Disproportionate rules curbing online advertising are a fundamental threat to this model.
In response to concerns specifically around data collection in the context of online behavioural advertising, the European advertising industry has developed an innovative self-regulatory initiative designed to give internet users more transparency and control (see www.youronlinechoices.eu/ for details). By providing a real-time, contextual user control tool when and where people would naturally expect it - in or around the ads themselves - this model constitutes a far more effective, relevant and user-friendly data protection mechanism than the measures required by today's proposals.
Said Stephan Loerke, WFA managing director: "There's no denying that the current data protection framework needs updating but today's proposal would have damaging consequences for jobs and our economy. It would stifle both growth and innovation across Europe - the opposite of what is needed in the current economic climate.
"Proposals for data protection must protect people's legitimate rights to privacy while also enabling business opportunities. These proposals have failed to achieve that balance."
For more information on the self-regulatory initiative for online behavioural advertising, see www.easa-alliance.org/page.aspx/386
More information at www.wfanet.org