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| E.U. Panel Backs Plan to Shield Online Data | E.U. Panel Backs Plan to Shield Online Data |
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| BRUSSELS — A panel of European Union lawmakers on Monday night backed a measure that could require American companies like Google and Yahoo to seek clearance from European officials before complying with United States warrants seeking private data. | BRUSSELS — A panel of European Union lawmakers on Monday night backed a measure that could require American companies like Google and Yahoo to seek clearance from European officials before complying with United States warrants seeking private data. |
| The vote, by an influential committee at the European Parliament, is part of efforts in Europe to shield citizens from online surveillance in the wake of revelations about a far-reaching spying program by the National Security Agency of the United States. | The vote, by an influential committee at the European Parliament, is part of efforts in Europe to shield citizens from online surveillance in the wake of revelations about a far-reaching spying program by the National Security Agency of the United States. |
| The panel, meeting in Strasbourg, also endorsed ways of tightening other privacy rules, including fines that could run to billions of euros on the biggest technology companies if they fail to follow rules like limiting the sharing of personal data. | The panel, meeting in Strasbourg, also endorsed ways of tightening other privacy rules, including fines that could run to billions of euros on the biggest technology companies if they fail to follow rules like limiting the sharing of personal data. |
| The measure, if accepted by the European Union, is part of wide-ranging data privacy legislation that has been under consideration for two years. It is expected to face more fierce lobbying from American officials and technology companies. The legislation would still require the approval of governments and the full European Parliament. | The measure, if accepted by the European Union, is part of wide-ranging data privacy legislation that has been under consideration for two years. It is expected to face more fierce lobbying from American officials and technology companies. The legislation would still require the approval of governments and the full European Parliament. |
| “This evening’s vote is a breakthrough for data protection in Europe and would overhaul E.U. rules, ensuring they are up to the task of the challenges in the digital age,” said Jan Philipp Albrecht, a German member of the panel, the Committee on Civil Liberties, Justice and Home Affairs. | “This evening’s vote is a breakthrough for data protection in Europe and would overhaul E.U. rules, ensuring they are up to the task of the challenges in the digital age,” said Jan Philipp Albrecht, a German member of the panel, the Committee on Civil Liberties, Justice and Home Affairs. |
| Mr. Albrecht is steering the legislation through the Parliament, and he added that the committee had “voted to make clear that it is exclusively E.U. law that applies to E.U. citizens’ private data online regardless of where the business processing their data has its seat.” | |
| Timothy Kirkhope, a British member of the committee, said before the vote, “A more principles-based and less prescriptive regulation would have been a better outcome.” | Timothy Kirkhope, a British member of the committee, said before the vote, “A more principles-based and less prescriptive regulation would have been a better outcome.” |
| After the vote, groups representing the technology industry pressed European leaders to oppose some of the measures. | After the vote, groups representing the technology industry pressed European leaders to oppose some of the measures. |
| John Higgins, the director general of DigitalEurope, which represents companies including Apple, Microsoft and I.B.M., criticized the measure and urged member states to look critically at it. “Rushing through a half-baked law risks throwing away a vital and much needed opportunity to stimulate economic growth,” he said. | John Higgins, the director general of DigitalEurope, which represents companies including Apple, Microsoft and I.B.M., criticized the measure and urged member states to look critically at it. “Rushing through a half-baked law risks throwing away a vital and much needed opportunity to stimulate economic growth,” he said. |
| European leaders are to meet in Brussels on Thursday and will mainly focus their discussions on using technologies to drive economic growth and create jobs. A document circulated before the meeting also incidated that leaders planned to acknowledge a need “to foster the trust of consumers and businesses in the digital economy.” | European leaders are to meet in Brussels on Thursday and will mainly focus their discussions on using technologies to drive economic growth and create jobs. A document circulated before the meeting also incidated that leaders planned to acknowledge a need “to foster the trust of consumers and businesses in the digital economy.” |
| The committee vote on Monday night, which Mr. Albrecht said had been delayed twice since April by intense lobbying, gives Mr. Albrecht a mandate to begin negotiating the final legislation with the European Council, the body representing Union governments. | The committee vote on Monday night, which Mr. Albrecht said had been delayed twice since April by intense lobbying, gives Mr. Albrecht a mandate to begin negotiating the final legislation with the European Council, the body representing Union governments. |
| Two years ago, Washington successfully lobbied the European Commission to abandon a similar measure that would have shielded Europeans from requests by American authorities to share online data gathered by some of the biggest American Internet companies, many of whose users live in Europe. | Two years ago, Washington successfully lobbied the European Commission to abandon a similar measure that would have shielded Europeans from requests by American authorities to share online data gathered by some of the biggest American Internet companies, many of whose users live in Europe. |
| For technology companies, the concerns now about the pending legislation are likely to focus more on high fines for infractions, and on restrictions on sharing personal data that could limit their ability to gain revenues from advertising and offering new services. | For technology companies, the concerns now about the pending legislation are likely to focus more on high fines for infractions, and on restrictions on sharing personal data that could limit their ability to gain revenues from advertising and offering new services. |
| Under current drafts of the legislation, fines would run as high as 5 percent of a company’s global annual revenue, rather than a cap of 2 percent, which was the figure proposed by Viviane Reding, the European commissioner for justice, who wrote the original draft of the legislation. | Under current drafts of the legislation, fines would run as high as 5 percent of a company’s global annual revenue, rather than a cap of 2 percent, which was the figure proposed by Viviane Reding, the European commissioner for justice, who wrote the original draft of the legislation. |
| Andrew Sheridan, an intellectual property lawyer at the law firm Freshfields in London, said the level of fines was a concern to many companies. “The most dramatic part of the reforms are the potential financial penalties,” Mr. Sheridan said by telephone before the vote on Monday. “If you get data compliance wrong, there’s a lot more at stake.” | Andrew Sheridan, an intellectual property lawyer at the law firm Freshfields in London, said the level of fines was a concern to many companies. “The most dramatic part of the reforms are the potential financial penalties,” Mr. Sheridan said by telephone before the vote on Monday. “If you get data compliance wrong, there’s a lot more at stake.” |
| As for the restrictions on data sharing with American authorities, Mr. Sheridan said he expected “a pragmatic compromise” when the Parliament began negotiating a final draft of the law with governments. | As for the restrictions on data sharing with American authorities, Mr. Sheridan said he expected “a pragmatic compromise” when the Parliament began negotiating a final draft of the law with governments. |
| Even if the proposal becomes law, existing bilateral agreements between individual European governments and the United States might keep data flowing across the Atlantic as part of efforts to fight terrorism and crime. “There already are existing rules for data transfer between Europe and third-party countries like the United States,” Luca Schiavoni, a telecom regulatory analyst based in London with Ovum, a technology consulting firm, said by telephone before the vote. | Even if the proposal becomes law, existing bilateral agreements between individual European governments and the United States might keep data flowing across the Atlantic as part of efforts to fight terrorism and crime. “There already are existing rules for data transfer between Europe and third-party countries like the United States,” Luca Schiavoni, a telecom regulatory analyst based in London with Ovum, a technology consulting firm, said by telephone before the vote. |
| “Europe is trying a more hands on approach than before,” Mr. Schiavoni said, but that is “not surprising based on the E.U.'s tradition of pro-consumer legislation.” | “Europe is trying a more hands on approach than before,” Mr. Schiavoni said, but that is “not surprising based on the E.U.'s tradition of pro-consumer legislation.” |
| Companies gathering data on Europeans would need to get an “explicit” right to consent before sharing their data in some cases. The goal would be to make it easier for online consumers using apps and other computer programs to know when they have agreed to letting their data be used. | Companies gathering data on Europeans would need to get an “explicit” right to consent before sharing their data in some cases. The goal would be to make it easier for online consumers using apps and other computer programs to know when they have agreed to letting their data be used. |
| Companies involved in social media and location-based advertising complain that the proposed rules would be too onerous. | Companies involved in social media and location-based advertising complain that the proposed rules would be too onerous. |
| “There’s a very real danger that it becomes meaningless to consumers that we burden them through choice that isn’t particularly relevant to them at a particular time,” said Pat Walshe, the director of privacy for GSMA, an industry group based in Britain representing global mobile telephone operators like Vodafone and Verizon. | “There’s a very real danger that it becomes meaningless to consumers that we burden them through choice that isn’t particularly relevant to them at a particular time,” said Pat Walshe, the director of privacy for GSMA, an industry group based in Britain representing global mobile telephone operators like Vodafone and Verizon. |
| Mr. Walshe made the remarks in a debate last week with Mr. Albrecht that was publicized on Monday by viEUws, an independent Web television channel. “We should take a more risk-based approach and reserve consent for those categories of data, and those contexts, where real risks emerge,” Mr. Walshe told Mr. Albrecht. | Mr. Walshe made the remarks in a debate last week with Mr. Albrecht that was publicized on Monday by viEUws, an independent Web television channel. “We should take a more risk-based approach and reserve consent for those categories of data, and those contexts, where real risks emerge,” Mr. Walshe told Mr. Albrecht. |
| The draft law voted through the committee on Monday also contains elements aimed at winning over skeptical business interests. What companies do with personal data would be scrutinized by regulators only if there were risks to individuals like identity theft or processing sensitive data. Small and mid-size businesses would have broader exemptions from the rules than originally proposed by Ms. Reding. | The draft law voted through the committee on Monday also contains elements aimed at winning over skeptical business interests. What companies do with personal data would be scrutinized by regulators only if there were risks to individuals like identity theft or processing sensitive data. Small and mid-size businesses would have broader exemptions from the rules than originally proposed by Ms. Reding. |
| The draft law also affirms that Europeans have a right to erasure of their data rather than expectations of being entirely forgotten, which was deemed impractical because it would be too hard to force online companies to hunt down every instance when a content is copied and placed elsewhere on the Web. | The draft law also affirms that Europeans have a right to erasure of their data rather than expectations of being entirely forgotten, which was deemed impractical because it would be too hard to force online companies to hunt down every instance when a content is copied and placed elsewhere on the Web. |
| Lawmakers want to pass the bill before spring partly to burnish their chances of success in the coming elections to the European Parliament in May. That timetable is strongly supported by Ms. Reding. | Lawmakers want to pass the bill before spring partly to burnish their chances of success in the coming elections to the European Parliament in May. That timetable is strongly supported by Ms. Reding. |
Mark Scott contributed reporting from Berlin. | Mark Scott contributed reporting from Berlin. |