We already know NSA surveillance could have a huge financial impact on US cloud providers as recent research projects up to $35 billion of cloud-related business will move away from the US over the next three years, and Europe is supposed to be the winner in this migration.
But a report by the New York Times over the weekend says that the European Union is cracking down on cloud by amending its digital privacy regulation introduced last year. From the report:
The European Union wants to regulate the cloud even if that makes its use more complicated. One proposed amendment would require “all transfers of data” from a cloud in the European Union to a cloud maintained in the United States or elsewhere to “be accompanied with a notification to the data subject of such transfer and its legal effects.”
Another amendment takes it further, barring such transfers unless several conditions are met. Not only must consent be provided by the subject of the data, but the person must be “informed in clear, unambiguous and warning language through a separate and prominently visible reference” to “the possibility of the personal data being subject to intelligence gathering or surveillance by third-country authorities.”