You're working in the real world, with real consequences if you end up exposing people's personal data. The party is ending. Either deal with it, or find something else to do.
The Poland proposal [1] to limit GDPR compliance to only large businesses was trying to address that. But it's flawed, because a small company (Cambridge Analytics) could still make a lot of damage to users' privacy... but the intent of Poland was good.
I feel there should be an opt-out based on the numbers of users and the age of the company/service: If you can easily prove that you're not handling more than X users and your company is less than 2 years old, then GDPR does not apply yet, as long as you warn clearly on your website that you're not-yet-falling-under-GDPR. If you're still in the GDPR-waiver zone but believe to be GDPR compliant, then you can remove the warning and are subject to GDPR like every other company.
That way entrepreneurs won't be scared to try some MVP here and there. I'm especially thinking of those trying to start a startup in countries that are part of the E.U.. The rest of the world entrepreneurs can just focus on their local userbase.
[1] https://iapp.org/news/a/polands-proposed-gdpr-exemptions-spa...
"We are a startup on a shoestring budget, we can't put safety belts in our cars!!!"
The cost of being in the car business is to build safe cars. The cost of being in the webservice business is to protect userdata.
If you can't, you are not good enough to be allowed on the market.
If you disagree, should the US also stop prosecuting VW for the diesel cheating?
The safest car is one that can't drive, and the most privacy-friendly software will fail to compile. You should be able to build a functional car before you need to worry about making it as safe as possible, and similarly you should be able to build a functional MVP of your software before you need to worry about compliance with a huge international policy.
Before you are permitted to use your DIY car you need to comply with safety regulations to avoid harming others. You can keep your unsafe car off the street in your garage, though. Same for software that is not compliant; you just don't get to call it a "product" and let it loose on the public.
you can drive your unsafe car on the track, and your negligent mvp on your customers own hardware as in-house software.
Great point about VW btw, I forgot about that !
A one person entrepreneur might not consider him/herself to be "being in the webservice business". Instead he/she would consider being in the business of [whatever problem the MVP is trying to solve]. It just hapens that in the 21st century, most of innovation happens online.
Back to your car analogy, it seems that people on one side argue that all companies "being in the webservice business" are 'car makers'. some people on the other side of the argument might say it's not.
Also, ultimately, it's possible that after spending a lot of time and hours examining the legal requirements of GDPR, a startup realizes it's not technically hard to comply, but the issue here isn't implementing the requirements, it's more about getting all the legal analysis, certification, handling customers requests, etc.
> If you disagree, should the US also stop prosecuting VW for the diesel cheating?
In that case, VW has clearly been in the car business for much more than 2 years, and in my example "X users", a good value for X would be something order of magnitudes less than the number of VW customers around the globe. So no, the US would continue prosecuting VW.
If your business is based around exploiting user data however it might be a lot harder, but then that's the point of GDPR, to prevent people exploiting user data.
GDPR exists because it turns out we can't trust companies to handle personal data with the care it deserves, and I don't see why any company should be excused that proper care.
It's that the equivalent of starting a new car company and arguing that you shouldn't be required to follow the same safety standard as Volkswagen Group, because you're still a small company?
At it's core the GDPR is simply stating that you're accountable for the data you collect and that you're only allowed to use the data for the purpose is originally collect. Building privacy into your product is much easier for someone designing something from scratch, compared to retrofitting it into the business plans of Facebook and Google.
I get the feeling that most of the people arguing against the GDPR are people who are focused solely in collecting user data as a core business. The people I know who are building actual product, where people pay for a service, are doing fine. Even though that they have to build products in a manner I suggested five years ago, where user data is either not collected or delete when processing is completed.
They are dealing with it... by limiting their liability.
These are things I can put off until later, I don't need them to validate my startup concept. If the startup is successful, it might make sense to expand the market.
As far as I can tell, the "user" doesn't have a whole lot of choice there and Facebook isn't the only company doing that kind of aggregated data collection.
I see them as a very poor example of good things coming out of Silicon Valley...
But Silicon Valley isn't a monolith where everybody is on the same page about everything, I have no doubt there's plenty of people in SC who consider FB a success-model to be followed into a shining future.
If “fighting over coconuts” is not on their list of things they wish to do, it’s not a completely absurd choice.
Plus, blatently ignoring regulation is cheaper in the short term, and if you successfully leverage that advantage into revenue than you can start throwing money at the problem once the regulators finally do get around to prosecuting you.
Worked for Uber.
I do agree with your overall point though.
The thing about GDPR that I disagree with is how it aims to have global jurisdiction. If it was a US law (as a US-based developer), perhaps I'd protest it, but I'd still follow it if I wanted to work in software.
So if you "sell" to EU residents, follow EU's rules.
Surely this will just result in the development of the reseller model?
As long as the reseller doesn't collect data, they're protected and as long as the US company doesn't maintain a presence or ideally market to the EU, they're untouchable due to the lack of any EU-US enforcement agreement for the GDPR.
"Most startups will fail": I do not see that happening. You will first receive a warning. The EU won't really care if you are a tiny startup. Unless you are running a shady business, there's not much to worry about.
Hence, the blocking of the EU - its better to block at the beginning and then expand to the EU once we have revenue to support someone handling this as an employee.
You know this is not what would happen, right, that you'd be given advice and the opportunity to towards an amicable resolution?
Uber versus Night School is an example of this. Uber: Ignore taxi regulations, get tons of VC, get rich while being awful people. Night School: try to work with government and play by the rules, fail, get used as a cautionary tale.
Source: https://psmag.com/economics/night-school-failed-because-it-f...
I think something akin to GDPR is necessary and good, but GDPR as written probably isn't it. I look forward to seeing how it works out in practice, and how it develops/is replaced, and in the meantime feel bad for the developers and customers that suffer through the unintended consequences and misfeatures of it.
After the law gets clarified some, I think you're right that it won't be bad for small players. But I wouldn't want to be one of the test cases.
Calling the data protection agencies "government" may be correct in some very legalistic sense, but is utterly wrong under any colloquial meaning of the word.
I know nothing about European legal systems though
And as a member of a EU country that for the last year has been constantly bending (when not breaking) the rules to repress and attack legitimate political reivindications, the relativism in the application of GDPR is something that I find very worrying.
You don't know this.
How many $300kEUR fines (the maximum in Germany until yesterday) served by a German DPA (we have 17: one federal, one per state) have you heard about in the last 5 years?
From April 2015 to March 2017 there were 124 proceedings, with 47 leading to fines.
The aggregate sum of all those 47 fines was... 174.226 Euros.
[1] http://www.dw.com/en/germany-fines-man-208000-for-stealing-c... [2] https://www.thelocal.de/20170405/germany-to-fine-social-medi...
The second one is a law very much like GDPR (notice the little words "up to"?). Not a single fine has been given based on that, not even a small one.
GDPR is the PCI of the privacy world, 99% of companies will be non compliant if audited, but 99% of companies wont be audited. The difference is unlike PCI anyone can launch claims against companies, including for malicious reasons like taking out a competitor, and political reasons like a eurocrat taking a disliking to a particular company.
I've been involved in GDPR efforts at work and all the policies seem fairly straight forward to me. If you're not doing shady shit and you're upfront with your users what you are collecting the data for, how long you keep it and what access policies you have set up.
Not a problem if you ask me.
Enforcement guidelines are ill-defined, and the definition relies on vague terms. For example, is retaining an IP critical to running your business? What if you're getting DDos'd? Now it is up to someone else to make that distinction, and you're dependent on them "being reasonable."
You can even self-report if you're not sure you handled the privacy well, and they will point you the stuff you have to work on (and give you month to do that).
I Understand Americans are afraid of fine and lawsuits, but please don't be afraid. Read GDPR statement from regulatory instances, they are here to help business too.
I think GDPR is short-sighted from a game theory perspective and will short-change European citizens.
When I sold software online, Europe was < 5% of my sales. Why take on business-ending liability risk for that amount of sales? Sure, maybe I'd do these things anyway, but once you open that pandora's box, you're relying on favorable interpretation and the goodwill of regulators.
Having seen what happened in the US with civil asset forfeiture, well-meaning laws can have their purpose bent, and goodwill can be perverted. Why take on that exposure?
Why would you hand of the data of your customers to someone that won't/can't prove to you that they will be in compliance with the current legal requirements?
Honestly that is the entire point of the GDPR, don't misuse customer data and don't hand it over to 3rd. parties unless the customer allows you to.
Good. Outsourcing violations, ethical or legal, shouldn't get you off the hook for them.
Besides which, what are you doing handing off stuff that's important to your business without knowing what's being done with it? Not a recipe for success. And if it's not important, then...
Most large banks and insurance companies are listed.
We had two major expenses: liability insurance for meetings and SOX insurance for the officers. Everything else was in the noise.
Are you just making this stuff up, or has this actually happened?
You didn't (as hundreds of others), so now the EU forces you to. So now you have an opportunity to become a better company: https://medium.com/tsengineering/the-gdpr-blog-post-9a571b13...
I think assuming the EU won't care about tiny startups is irrelevant - I want to follow the letter of the law, it's why I'd opt to block EU users instead of just ignoring the existence of the law.
As a dev though, I also understand the frustration. Creating startups is already time-intensive and stressful. A lot of us are on shoestring budgets. Most startups will fail. To a solo developer in the US, the idea of spending time understanding and complying with GDPR is daunting, it's more than just a hindrance to many. Still, I don't want to break European law, so maybe it's easier to block EU users at first and change policies later if profitable.
I think blocking is at least showing you respect the law, compared to just doing nothing and being non compliant.