Data Protection: The New Technical and Political Environment

Abstract

The plunging cost of storing, transmitting and processing personal data mean that little technological incentive remains for system designers to minimise the collection of personal data. Information can be transferred around the world at low cost, and duplicated across databases and portable computing devices. Ongoing increases in processing power allow more information to be extracted about individuals from this mass of data, using data mining algorithms to discern and record patterns of behaviour that in turns affects how individuals are treated. Effective data protection now depends upon the robust application of principles such as purpose limitation and the minimisation of personal data collection, as required by the EU Data Protection Directive and many other nations’ privacy laws.

Keywords: data protection, privacy, new technology

JEL Classification: K20, O33