The European Union (EU) has announced a set of recommendations to make it mandatory for all smart devices connected to internet to assess their cybersecurity hazards. The step has been taken despite growing concerns about cyberattacks. Under the newly proposed legislation, the European Commission may also impose a fine of up to EUR 15 million (nearly Rs. 120 crore) or a 2.5 percent of its worldwide turnover if all businesses fail to comply with the rules.
The European Commission has put on the market all smart devices connected to internet, including laptops, refrigerators, and smartwatches, in order to assess the cybersecurity risks. In the event of any errors, the organizations are obligated to fix them under the new Cyber Resilience Act. According to the European Digital Chief, it will prioritize where it belongs, with the authorities that have placed the goods on the market.
In September 2021, European Commission President Ursula von der Leyen announced the move. The goal has been set forth to increase the security of digital goods across the EU. Failure to comply with legislation can result in a fine of up to EUR 15 million or up to 2.5 percent of the worldwide global turnover.
Vestager urged companies to comply with these standards of assessing cybersecurity risks, as it might save them up to 290 billion euros per year in cyber occurrences.
Manufacturers will have to assess the security risks on their products under the new legislation. In the event of any glitches, the companies must adopt appropriate procedures to remedy problems. En out, they are also required to notify ENISA within 24 hours as and when they know about it.
Before being adopted as a law, draft rules will need to be discussed with EU legislators and EU legislators.