A new report has revealed that around 52 per cent of global companies expect to be fined for non-compliance with the upcoming General Data Protection Regulation (GDPR), a new ruling within the European Union.
The study commissioned by SaaS provider Intralinks and conducted by analyst firm Ovum showed that, this, too, is the average response among top nations such as UK, US, and Germany, where, 53 per cent, 58 per cent and 62 per cent respectively may face a fine.
The mission of the study was to see the level of preparedness of businesses for the new regulations, and was conducted among IT decision-makers across Europe, the Americas and Australasia.
Given the admission of the lack of preparedness for the upcoming regulations, the study also showed that two-thirds of global firms would review their business strategies in some European countries in the next year.
This comes along with another outlook from 68 per cent of respondents, which said that the new regulation would increase the cost of doing business in Europe. Of these respondents, over 30 per cent expect their budgets to rise by more than 10 per cent over the next two years, wherein costs may include hiring specialists in the field.
The survey also revealed that 63 per cent of the respondents believe that another down side of the new law will be the tougher competition for US firms in Europe. Parallel to that, 70 per cent think that the new legislation will favour businesses based in Europe.
"New regulations, such as the GDPR, are seriously worrying global businesses," said Ovum senior analyst Alan Rodger. "Different jurisdictions are imposing inconsistent and often incompatible mandates for how personally identifiable information is stored, processed and shared.
"This is already creating confusion and uncertainty, leaving fundamental questions unanswered, such as how to interpret data location requirements. Organisations need technology options that help them react to a rapidly changing regulatory environment."
Image source: Shutterstock/AVN Photo Lab