Brexit will create problems with data transfers

A no-deal Brexit would seriously disrupt the free flow of commercially valuable data between Europe and the UK, leaving companies across the finance, hospitality, manufacturing and technology sectors facing “immense” extra costs, according to a new study by University College London.

The report, to be published this week and to which The Guardian refers, says potential problems post-Brexit with data transfers have received “minimal attention” in the debate over the UK’s exit from the EU, but could turn out to be as serious to the economy as more visible issues relating to cross-border trade.

The study says that even if there were a Brexit deal, new rules on data transfers between organisations in the EU and the UK – currently governed by EU law – could prove hugely difficult to renegotiate bilaterally. But if there is no deal, the study warns there will be immediate and serious economic repercussions. “No transitional period would entail significant legal, economic, political and social disruption in the UK,” the report says. “The UK would immediately become a third country in EU law, and instant disruption to EU-UK data flows would ensue.”

Via The Guardian