Outdated European data protection rules 'cost £2billion a year' Tough new rules are expected to be announced on Wednesday, and are likely to enlarge on plans leaked in November. Europe's data laws have not been significantly amended since 1995. Viviane Reding, vice president of the European Commission, said in a speech yesterday that the new data-protection legislation was needed to protect users and cut red tape for businesses in Europe. Only if consumers trust that their data is protected will they entrust companies with it ... We need individuals to be in control of their information," Reding said at the DLD conference of tech industry leaders in Munich. Reding claimed Europe's red tape was excessive. "In Europe we have too many rules, conflicting rules," she said. The extra cost to business of this fragmentation is 2.3 billion euros ($3 billion) a year. The legislative process is likely to take at least two years, so the rules could still change considerably. Internet companies will not be required to comply before 2014 or 2015, after legislation has been approved by national government with widely varying interpretations of user privacy online. Among the key features of the bill is the new right for web users to force companies to delete all data that is held about them, or for them to easily be able to take their data elsewhere, for instqance by moving from Facebook to LinkedIn. The hope is to give web users greater clarity over what companies can do with potentially valuable data about them. Facebook, the world's largest social network, has been investigated by US and European regulators for its treatment of user data and privacy policies. In November, it signed a settlement with the US Federal Trade Commission that will subject it to 20 years of independent audits, and it recently signed an accord with Ireland's privacy regulator on how it treats users' data.There has also been a series of high-profile breaches such as one at Sony Corp's online videogame network last year in which hackers stole the data of some 77 million users. Some law firms have warned that European propsoals go too far, however. Mark Watts, data protection partner at Bristows warned the legislation could be interpreted as including "A requirement that effectively means anyone with a Facebook page that is searchable on Google should file a notification with the Information Commissioner to avoid committing a criminal offence." The legislation could also fine companies in breach 5 per cent of global turnover, and require them to notify data protection commissioners of any breaches within 24 hours. It could also mandate the appointment of a named individual responsible for data protection. Facebook last year warned that "There is a risk that an excessively litigious environment would impede the development of innovative services that can bring real benefit to European citizens."