On Wed 29 March, the United Kingdom signed a letter triggering Article 50 to exit the EU. But what does it mean for digital marketing?
GDPR will apply to all firms handling data on EU citizens, even if the supplier is based outside the EU, such as Switzerland or the UK. UK companies that don’t comply with GDPR may find EU companies and citizens reluctant to share personal data with them when GDPR is enforced on May 2018.
Respected Enterprise software analyst, Ray Wang of Constellation research, said Financial services firms will consider moving HQ from UK to Frankfurt, Paris, or Amsterdam. Pharma firms will consider moving HQ from UK to Switzerland, Germany, or Ireland. Tech firms will consider moving HQ from UK to Ireland as many have already located data centers and R&D.
According to Derek Harding, The problem is EU brands working with UK providers. For countries outside the EU to handle European data they need to convince the European Commission that they provide an adequate level of protection. I don’t doubt that will happen but no one knows how long it will take or what the circumstances will be. In the meantime European brands are left with enormous uncertainty about placing their data in the UK or with UK providers.
Some may elect to exclude UK providers from RFPs or even switch to EU based providers for their data hosting requirements. UK based providers will have to work that much harder to win or retain their business.