Yes, no matter. Should small companies also get free pass on food safety laws? Health inspections are a PITA for restaurants too.
This reaction is pretty much textbook psychological reactance[0]. People doing business had some freedoms wrt. user data, but it turned out in practice that they should never have them in the first place. Now that those excess freedoms are being removed, businesses cry foul.
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But if you look at how reality works, then you'll see that small companies often do not implement the proper food safety standards. This causes all sorts of problems, because if a company already does one shady thing, then doing one more isn't as much of a problem anymore.
The contempt shown for us collectively as users and people is what triggered the regulatory backlash.
The 2016 electron demonstrated that better than anything why this is important.
As mentioned before, size limits is probably good for compliance costs; if the problem is political influence, make that a key part of the law. Making part of the law liability per privacy breach can be useful too (to deter companies from lax security that end up with them hacked).
Legislators don't have the luxury of saying "I'm not totally sure what's the best legislation" to fix this issue; they are forced to propose an actual fix. If you don't have a better alternative on hand, I'd urge you to consider that which legislators have arrived upon after months or years of consideration.
Like encryption, data privacy is either all or nothing.
And personally? I'd rather live in a world without tracking-enabled Google and Facebook business models than the one we're currently in.
Holding personally identifiable data is a toxic externality: Experian simply exposed a clear case.
If you want to do so, you should have to bear that cost. Or design your business model differently so that you don't.
For example ACA 2012 (Obamacare) applies the most onerous terms on companies greater than 50, but not a lot of 100 person companies split into two groups of 50 to dodge it.
I think privacy is indeed along a spectrum and not binary. I certainly think that EU citizens are more concerned with Facebook and the vast trove of data they have and political irresponsibility with it than with GarethsFirstApp in the Android store handling user data well.
And I'd point out that the latest Facebook media privacy outrage was caused by a smaller (1 person?) third party company.
GarethsFirstApp isn't so innocent when it's providing Facebook with data they can no longer collect themselves (given a hypothetical "You're small, so we'll let you get away with it" GDPR).
So based on that some might argue, that the small bussinesses should be regulated more as majority of violations are comming from them, not well established bussinesses. It is probably not true, but it might also be.
So... binary only is a right way to go.
The word choice almost presumes the conclusion, that data privacy rules are obvious, and cheap, and akin to just washing hands after using the toilet.
Every regulation has costs and benefits. I also would love to have better worldwide privacy at no or little cost, but the fact that people are blocking the EU shows that some companies just don't see this to be the case. And they're voting with their feet.
EU citizens should accept the fact that if they support the law, they will further data privacy protections, which are good, and they will face the music if some innovation leaves or whatever compliance costs may come with it.