Electronics Giants Warn of Supply Chain Disruption Over EU Cybersecurity Rule’s
A coalition of prominent electronics manufacturers, including Siemens, Ericsson, and Schneider Electric, joined forces with the industry group DigitalEurope to raise alarm over the potential disruptions to supply chains caused by proposed European Union (EU) regulations targeting cybersecurity risks associated with smart devices. In a joint letter addressed to European Union industry chief Thierry Breton and EU digital chief Vera Jourova, the CEOs of these companies warned that the proposed rules could lead to bottlenecks reminiscent of disruptions experienced during the pandemic, reported Reuters.
The proposed regulations, known as the Cyber Resilience Act, were introduced by the European Commission last year in response to growing concerns about the security of internet-connected devices.
Under the Act, manufacturers would be required to conduct assessments of the cybersecurity risks associated with their products and take corrective actions over a period of five years or the expected lifetime of the devices. Importers and distributors of internet-connected devices would also be subject to these rules, aiming to ensure a higher level of security across the supply chain.
The push for stronger cybersecurity measures comes in the wake of several high-profile incidents where hackers targeted businesses, causing significant damage and demanding substantial ransoms. These incidents have highlighted the vulnerability of smart devices and the need for more stringent regulations to safeguard against potential threats.
However, the coalition of electronics giants and DigitalEurope expressed concerns that the current formulation of the Cyber Resilience Act could inadvertently disrupt the single market. Their joint letter emphasized the risk of creating bottlenecks within the supply chain, potentially impacting the flow of products and services throughout the EU.
The industry leaders behind this letter have called for a more balanced approach that ensures the security of smart devices without causing undue disruption to the market. They recognize the importance of addressing cybersecurity risks but argue that a collaborative effort is needed to strike the right balance and protect the integrity of supply chains in Europe.