UK companies face hard time from data protection law

UK companies stand to suffer more than the rest of Europe if last Thursday's 1998 Data Protection Act (DPA) damages trade between Europe and the US, according to a leading IT security consultant.

Europe is much tougher on the use of personal data in business than the US, where self-regulation is considered to be sufficient. The 1998 DPA contains laws which prevent abuse of privacy and ban the export and trade of personal data to any country without equally tough laws. Many European businesses fear these constrictions could damage trade to the US.

According to Mike Usher at security consultants, Indicci Salus the UK is much stricter about DPA legislation than most other European countries and will be hit harder by the new legislation. "The UK adopts a very rigid rule structure compared with other European countries where it's more a matter of principle," he explained.

It is not clear yet whether the law will harm trade between the EU and US. Usher said he expects the data protection registrar to be pragmatic in its enforcement of the export ban.

Elizabeth France, UK data protection registrar told Silicon.com that the last thing her department intends to do is create a trade war.

Usher added he thinks that all companies will be able to find a way around the legislation leaving trade intact.