What Brexit Could Mean for the Tech World 

The United Kingdom is officially leaving the European Union, thanks to a landmark referendum on Thursday, June 23.

But while the historic decision will clearly have consequences for the world — the value of the UK pound plummeting, and trade and immigration complications, for example — Brexit, as it’s being called, will likely have repercussions for the tech industry as well.

Britain’s departure from the EU means that both British and foreign tech businesses that operate in the country will have a slew of problems thrown at them, according to CNET.

And as a major economic and cultural center of Europe, there are a lot of tech companies based in England.

According to the Washington Post, a majority — a whopping 84 percent — of tech firms based in the United Kingdom were against leaving the EU.

One of the reasons, the Post wrote, is that England’s EU membership meant that it was easier for British start-ups to secure funding from European investment groups.

Immigration is another concern. Citizens of the European Union have free reign to travel between and work in member countries without visas. With that ability gone, British companies are worried about a future shortage of qualified workers.

The data transfer industry is also likely to be hit pretty hard by Brexit as well, according to Forbes.

Transferring personal data to and from the European Union requires adequate data project, because of the EU’s General Data Protection Regulation. If British companies want to continue data transferring — which makes up a significant portion of the UK economy — they will need to adhere to EU regulations.

But there are alternatives to EU membership. Norway, for example, is not a member of the EU, but enjoys laxer trade and immigration regulations thanks to its inclusion in the European Economic Area. If Britain were to be a part of the EEA post-Brexit, many of these problems could be remedied.

But many of the ramifications of Brexit aren’t quite worked out yet. A long road of negotiations between the UK and the EU lies ahead.

And it’s not too much of a stretch to say that the entire world — and the tech world — will be keeping a close eye on that road.