Dotcom chief warns of huge costs for ‘cyber compliance’

Date: 06/12/01

By Peter Chapman

COSTS of complying with a raft of European 'cyber-snooping' rules could easily dwarf the bill faced by internet firms for storing huge amounts of client data, a senior industry expert claimed this week.

The warning from Roger Cochetti, chief policy officer of VeriSign, the company which manages the '.com' domain name, comes as member states ponder national rules forcing companies to retain data in a bid to bolster the fight against terrorism. Industry has so far focused on the massive bill for storing information such as payments and e-mail traffic flow for periods ranging from several months to years.

But Cochetti said: "My guess is that the greatest cost is not the storage but the regulatory compliance. You will have to design everything you do so that you can change it if the regulatory environment changes."

In the meantime, the internet expert is calling for the EU to launch a full study to put a price on different time frames before member states act. "We need a better understanding of the real costs," he added.

Telecoms Commissioner Erkki Liikanen has said he fears that tough data-retention requirements could have an impact on the single market for internet services.

EU telecom ministers were expected to debate the issue today (6 December).

Roger Cochetti, a senior industry expert, claimed in December 2001 that the costs of complynig with European 'cyber snooping rules' could cost much more than the bill for storing vast amounts of clienmt data.