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Cyber Resilience Act Review: Weighing the Advantages and Disadvantages of Built-in Cybersecurity

The European Union's new Cyber Resilience Act aims to strengthen the cybersecurity of digital goods for EU consumers. The Center for Data Innovation gathered professionals to deliberate on the Cyber Resilience Act, the principles of design-based security, and the hurdles the plan may encounter.

Summary: Analysis of Security-By-Design Implementation Costs and Advantages in Cyber Resilience Act
Summary: Analysis of Security-By-Design Implementation Costs and Advantages in Cyber Resilience Act

Cyber Resilience Act Review: Weighing the Advantages and Disadvantages of Built-in Cybersecurity

The European Union's Cyber Resilience Act (CRA) has sparked debates among policymakers, industry experts, and businesses regarding its implementation. The CRA, adopted by the European Parliament in March 2024, aims to strengthen the cybersecurity of digital products used by EU consumers. However, practical details about its implementation remain unclear, leading to concerns and disagreements.

The main challenges and disagreements on CRA implementation revolve around three key areas: legislative interactions, impacts on free and open source software (FOSS), and compliance costs for businesses.

**Legislative Interactions and Implementation Challenges**

The regulatory landscape for the CRA is complex, as it coexists with other EU cybersecurity regulations such as NIS2, the Cybersecurity Act, CER Directive, GDPR, and DORA. This overlap and coordination among these rules pose a challenge that businesses must navigate carefully. Industry surveys by the European Cyber Security Organisation (ECSO) revealed major challenges, including the lack of clarity on product categorization, timelines for enforcement, and how to conduct risk and conformity assessments.

**Sections Affecting Free and Open Source Software (FOSS)**

The CRA's approach to software security has raised concerns specifically about its potential impact on FOSS. While detailed explicit disagreements on this are limited, the broader discussion around cybersecurity legislation in the EU often highlights worries that mandatory certification, liability, and reporting requirements could disproportionately burden open source projects that typically operate without commercial backing or dedicated security teams.

**Compliance Costs and Business Impact**

Compliance with the CRA is expected to be resource-intensive for many companies. Organizations manufacturing digital hardware or software for the EU market are anticipated to face the need for significant investments, including hiring multiple specialists just to manage mandatory vulnerability reporting and resolution. Businesses are concerned about the operational burdens and the costs of ensuring ongoing compliance, especially small and medium enterprises or those relying on embedded or open-source software components.

These points highlight the need for clearer guidance, tailored approaches for open source, and support for businesses to manage CRA's complex requirements effectively. The European Commission is currently working on providing further clarification to address these concerns.

[1] European Cyber Security Organisation, "ECSO Industry Survey: Cybersecurity Act and Cyber Resilience Act," 2023. [2] Tuxera, "Cyber Resilience Act: What It Means for Open Source Software," 2023. [3] Future of Privacy Forum, "Cyber Resilience Act: Implications for Data Protection," 2023. [4] ACT | The App Association, "Cyber Resilience Act: Impacts on Small and Medium Enterprises," 2023.

  1. The European Commission is addressing concerns about the implementation of the Cyber Resilience Act (CRA) by providing further clarification to address the need for clearer guidance.
  2. The coexistence of the CRA with other EU regulations such as NIS2, the Cybersecurity Act, CER Directive, GDPR, and DORA creates challenges for businesses, particularly in terms of product categorization, timelines for enforcement, and risk and conformity assessments.
  3. The potential impact of the CRA on free and open source software (FOSS) has raised concerns, with worry that mandatory certification, liability, and reporting requirements could disproportionately burden open source projects.
  4. Compliance with the CRA is expected to be resource-intensive for many companies, with businesses anticipating significant investments in hiring specialists to manage mandatory vulnerability reporting and resolution, especially small and medium enterprises.
  5. The implementation of the CRA and its regulations will have a significant impact on data privacy and cybersecurity, as it pertains to data-and-cloud-computing and technology, given its scope of covering cybersecurity aspects in AI and digital products.

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