DMA: Most marketers concerned Brexit will disrupt free flow of data between the UK and EU

The UK Government’s decision to delay the Brexit deal vote in Parliament has only increased uncertainty over how future relations between the EU and UK could look. The stalling is making marketers nervous whom depend on the cross-border free flow of data, according to the DMA’s new ‘Data privacy – An industry perspective report.

  • 51% of marketers are concerned that there will be a financial impact to their organisations if the free flow of data between the UK and the EU is eroded by Brexit,  Just 25% of marketers stated they were unconcerned.
  • 90% of marketers want Britain to retain access to a ‘digital single market’ after Brexit, although this would be unlikely given Theresa May’s rejection of freedom of movement, a key pillar of the single market. This figure is up from 78% in the previous edition of the report back in May 2018.
  •  The number of marketers who feel the benefits of the GDPR outweigh the costs has doubled from 16% in May to 32%.
  • Additionally, following Brexit, most marketers (78%) believe the UK should adhere to the existing GDPR legislation – with a further 11% even wanting stricter rules.

The challenges of a no-deal Brexit would be very complicated for British businesses, as the disruption to the free flow of data between the UK and EU would be very damaging and costly. Although larger organisations may have the resources to implement standard contract clauses to be able to continue data transfers in a no-deal Brexit scenario. SME’s will be seriously disadvantaged by the administrative burden. Furthermore, marketing service providers offering cloud-based service solutions are already opening data centres in the EU to service their European customers as a part of their contingency planning.

Chris Combemale, CEO of the DMA