Cyber Resilience Act could impose fines of up to €15 million ($14.9 million) for serious violations of new rules. (Source: Andrey Kuzmin/Alamy Stock Photo) |
The European Commission is pressing ahead with plans for new rules that aim to impose new cybersecurity requirements on all manner of connected devices, including smartphones.
First announced by EC president Ursula von der Leyen in her
State of the Union Address in September 2021, the European Cyber Resilience Act
(CRA) intends to "establish common cybersecurity rules for digital
products and associated services that are placed on the market across the
European Union."
Smart devices connected to the internet such as fridges and
TVs will have to comply with tough European Union cybersecurity rules or risk
being fined or banned from the bloc, according to a European Commission
document seen by Reuters on Thursday.
Concerns about cybersecurity attacks have mounted in recent
years following high-profile incidents of hackers damaging businesses and
demanding huge ransoms.
The EU executive will announce its proposal known as the
Cyber Resilience Act on Sept. 13. It is likely to become law following input
from EU countries.
The rules could cut the cost of cyber incidents to companies
by as much as 290 billion euros ($289.8 billion) annually versus compliance
costs of about 29 billion euros, the paper said.
Manufacturers will have to assess the cybersecurity risks of
their products and take appropriate procedures to fix problems, the document
said.
The companies will have to notify EU cybersecurity agency
ENISA of incidents within 24 hours once they are aware of issues, and take
measures to tackle the problems.
Importers and distributors will be required to verify that
products conform with EU rules.
If companies do not comply, national surveillance
authorities can "prohibit or restrict that product being made available on
its national market, to withdraw it from that market or recall it", the
paper said.
Flouting the rules can cost companies fines as much as 15
million euros or up to 2.5% of their total global turnover, whichever is
higher, with lower fines for less serious breaches.
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