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VivaTech 2018: Cisco CEO applauds Europe's move toward stricter data regime

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VivaTech 2018: Cisco CEO applauds Europe's move toward stricter data regime

Cisco Systems Inc. CEO and Chairman Chuck Robbins welcomed the European Union's swath of tough, new laws on data privacy, calling it an "exemplary" standard for the global community, offsetting criticism that tougher regulation makes it harder to compete.

Speaking May 24 at this year's VivaTech conference in Paris, the information technology and networking executive said he admired the principles behind the legislative changes, known as General Data Protection Regulation, or GDPR, on the heels of their May 25 launch.

Responding to wider criticism of the laws as a threat to Europe's global competitiveness, he said the rapid pace of change in the tech industry — and the difficulty for lawmakers in understanding the vast shifts — had made it necessary for the regulatory environment to catch up.

"Everyone can debate details but … I applaud what's going on here," Robbins said, adding, "it's going to require all of us in the tech industry to spend more time [educating] the regulators to make sure they understand what's going on."

The GDPR's aim is to expand EU regulators' territorial reach and give consumers greater control of their personal data by requiring companies to gain consent from all online users to collect and use their data. Businesses operating in Europe will also be required to notify users and authorities of any data breaches within 72 hours.

The new measures threaten steep penalties for failure to comply, including fines of €20 million, or 4% of annual turnover for the most serious breaches.

So far, Cisco said it had managed to navigate its way through the new policy on data privacy by hiring a chief privacy officer to ensure compliance on a global basis, on top of its extensive security operations, Robbins said.

Cisco announced its 200th acquisition in 2017 and spends $6 billion each year on research and development, according to Robbins. The company has closed a steady stream of M&A deals in Europe amid mass adoption of cloud services and software-as-a-service products, as well as the growth of internet of things networks.

Cisco's M&A pipeline will include businesses that add new technology, particularly analytics and security to its existing portfolio, the CEO said.

The company will also continue to target deals that move the business into relevant, adjacent areas and that give customers access to new markets through acquisitions.

"What we are doing is adding more and more capabilities to the network players … and helping our customers actually navigate this new world that they're going to have to operate in, with a real focus on security," Robbins said.