Tech giants under the Digital Industry Group Inc (Digi) are warning the federal government that the bill to increase penalties for data breaches is overreaching the law’s powers to their overseas customers.
The new privacy bill amends the current Privacy Act to ensure that foreign organisations in Australia must meet the data privacy obligations even if they do not collect or hold Australian data.
While Digi, which represents tech giants such as Meta, Google, and the Tech Council of Australia, supported the strengthened penalties for serious breaches, it also expressed concern regarding the reach of the bill in regard to offshore corporations.
“It is not clear why Australian laws seek to regulate the management of personal information that has no direct connection with Australia or with Australians,” the organisation stated.
Organisations such as the Business Council of Australia and the Tech Council of Australia have called for amendments to the provision that would specify the regulation of information so as to not come into direct conflict with laws in other jurisdictions.
In its submission, the attorney general’s department stated that the jurisdiction provision was needed as the evolution of technology has made it difficult to establish that foreign organisations collect or hold personal data directly from Australia.
“For example, they may collect personal information from a digital platform that does not have servers in Australia, and transfer it to other entities overseas for processing and storage,” the submission said.
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Meanwhile, some have also expressed concerns regarding the proposed penalties.
The Australian Information Industry Association (AIIA) warned that the bill’s disproportionate penalties for data breaches could discourage businesses from being transparent and cooperating with governments.
The Council of Small Business Organisations of Australia also expressed doubts regarding the proposed penalties as they would be “the toughest in the world”.
Organisations have called for amendments to the bill’s penalties, calling for more defences and “safe harbour” provisions that will help businesses report data breaches and take steps to secure data.
The bill is due to be debated in Parliament this week.
Source: The Guardian. Content has been edited for style and length.