Company says: “Due to the GDPR, we are no longer able to offer our service to customers in the European Union.” I hear: “You are not a customer. You never were. You are PRODUCT. Now that your privacy is protected by law, you are no longer worth anything to us. Go away.”
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Likely to backfire by hurting EU startup velocity. While EU startups spend precious early resources on implementing compliance, their competitors test their products and capture market share that finances entry into the costlier EU market.
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If you mean 'loose sensitive data stored on unencrypted iot sextoys' by 'test your product' than I'm fine with the lowered startup velocity
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While the GDPR might work against companies that sell a physical product in the EU, I'd expect online adult services to be more likely to be hosted and keep your data outside the EU after the GDPR. Good luck enforcing the GDPR in Russia...
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If you hold the data outside the EU you must inform the user and get their explicit permission. Plus if the data transits the EU under control, from a browser say, then it will be covered.
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Good luck suing a Russian, or other non-EU, company and asking the Russian courts to enforce those "musts" in a non-EU jurisdiction where GDPR is not the law of the land.
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It wouldn't be me suing them. But not disclosing where the data is stored, processed and which country a company operates from will have the more useful effect of warning off users. (over time). Right now I don't want my data in Russia or many other countries, it's a Good Thing
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A .com domain looks the same regardless of where it's hosted, and the problem is exactly that the GDPR encourages running services from non-EU jurisdictions by adding costly compliance to anyone running them inside the EU.
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If the scale of operations is moderate the costs will also be moderate. If the scale is large then the benefits are also large and the impact of breaches are all the greater. If the law dissuades badly run companies that risk personal data then that seems a good outcome.
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