Category: International Data Transfers
27. September 2022
From September 6th to September 9th, 2022 a meeting between representatives of the G7’s Data Protection Authorities was held in Bonn, Germany, to discuss current regulatory and technological issues concerning the concept of Data Flow with Free Trust (DFFT), a proposed guiding principle for international cooperation on data flows.
It aims at providing answers to several questions in order to create a safe global digital environment in which the protection of data flow is guaranteed. The most important question is: how to overcome the existing data flow barriers? It may seem difficult to introduce a harmonization between countries that have a completely different approach and regulations in regard to personal data protection. To answer this question, a bottom – up approach was adopted for the implementation of the DFFT: it is foreseen that high – level intragovernmental discussions that result in pragmatic rule – making will be held, in order to parallel the public/private relationship for the resolution of individual issues.
Scholars and experts seem to think that RegTech could prove a very useful help to the implementation of the DFFT. To tackle some of the issues that were found in the various discussions and that resulted from research, the World Economic Forum issued a white paper finding seven common success factors that define the best deployment of RegTech.
This concept, first proposed by Japan’s late Prime Minister Shinzo Abe in 2019, is now moving into the implementation phase, mainly concerning trade agreements including e – commerce. A milestone regarding this topic will probably be the next G7 Conference, which will be held in Japan in 2023. Kishida Fumio, the new Japanese Prime Minister, claimed his country’s initiative in the project, and pledged his commitment to the continuous development of the DFFT.
26. August 2022
In July 2022, after an investigation related to a data breach was carried out by the Danish Data Protection Authority (Datailsynet), Google Chromebooks and Google Workspace were banned in schools in the municipality of Helsingor. The DPA ruled that the risk assessment carried out by city officials shows that the processing of personal data by Google does not meet GDPR requirements. In particular, data transfers have been targeted by the Authority: the Data Processing Agreement allows data transfer to third countries for analytical and statistical support, though the data are primarily stored in Google’s European facilities.
This decision comes in a moment of tension in the world of personal data between Europe and the United States of America: other notorious cases (some still ongoing) are the case of the Irish Data Protection Authority vs. Facebook (now part of Meta Inc.), and the case of the German Federal Cartel Office vs. Facebook. European watchdogs have found that in many cases the American tech giants’ policies do not meet the requirements established by the GDPR. This could be traced back to a lack of legal framework in the field of privacy and personal data protection in the United States, were these companies are based.
This decision was taken in the aftermath of the Schrems II ruling by the European Court of Justice, which stated that the pre-existing agreement on data transfers between Europe and the US (so-called Privacy Shield)was not compatible with the GDPR. A new deal is on the table, but not yet approved nor effective.
Google is becoming the target of various investigations by European data watchdogs, above all because of its tool Google Analytics. In January the Austrian Data Protection Authority published an opinion in which it stated that companies using Google Analytics inadvertently transferred customers’ personal data such as IP addresses to the United States, in breach of the GDPR. Italy’s Garante per la Protezione dei Dati Personali published a similar opinion a few weeks later, stating that “the current methods adopted by Google do not guarantee an adequate level of protection of personal data”.
23. June 2022
On June 16, 2022, the European Data Protection Board (EDPB) announced on its website that it had adopted guidelines on certification as a tool for transfers of personal data (publication is yet to take place following linguistic checks). Once published these guidelines will undergo public consultation until September 2022.
On a first note, these guidelines can be placed within the broader context of international data transfers, as envisioned by art. 46 (2) (f) GDPR. Further, the certification mechanism comes only into play when an adequacy decision is absent. As is probably well known, art. 46 (2) GDPR outlines several safeguards that may be resorted to in case personal data is being transferred to third countries.
One of these is the voluntary certification mechanism, as laid down by art. 42/43 GDPR, that allows accredited certification bodies or supervisory authorities to issue certifications, provided, of course, that controllers or processors have made binding and enforceable commitments. What the EU legislators hoped was to assist data subjects in quickly assessing “the level of data protection of relevant products and services” (Recital 100 GDPR) by way of certifications, seals, and marks.
In accordance with art. 42 (5) GDPR and guideline 1/2018 on certification, whereby the latter is to be complemented with the new guidelines, accredited certification bodies or supervisory authorities are competent to issue such certification. It is important to note that the previously mentioned accredited certification bodies could very well be private bodies which are subject to certain requirements and prior approval by the Board or supervisory authorities. The criteria on the basis of which certifications are issued are to be determined and approved by the Board or by the competent supervisory authorities (art. 42 (5) GDPR).
According to EDPB Deputy Chair Ventsislav Karadjov, these yet-to-be published guidelines are “ground-breaking” as he provides an outlook for the content of the guidelines. One of the most important aspects that will be touched upon are the accreditation requirements that certification bodies have to comply with as well as the certification criteria attesting that appropriate safeguards for transfers are in place. It remains to be seen whether these guidelines will indeed provide more guidance on those aspects.
31. May 2022
In 2021 the Department for Culture, Media and Sport (DCMS) published a consultation document entitled “Data: a new direction”, requesting opinions on proposals that could bring changes to the UK’s data protection regime. On May 10, 2022, as part of the Queen’s Speech, Prince Charles confirmed that the government of the United Kingdom (UK) is in the process of reforming its data privacy rules, raising questions about whether the country could still be in compliance with the General Data Protection Regulation (GDPR).
Other than the statement itself, not much information was provided regarding the specific details. The accompanying briefing notes provided more information. They set out the main purposes of the Bill, namely to:
- The establishment of a new pro-growth and trusted data protection framework
- Reducing the burdens on business
- Creation of a world class data rights regime
- Supporting innovation
- Driving industry participation in schemes which give citizens and small businesses more control of their data, particularly in relation to health and social care
- Modernization of the Information Commissioner’s Office (ICO), including strengthening its enforcement powers and increasing its accountability
Nevertheless, the defined goals are rather superficial. Another concern is that the new bill could deviate too far from the GDPR. The new regime might not be able to retain the adequacy-status with the EU, allowing personal data to be exchanged between UK and EU organizations. Prime Minister Johnson said that the Data Reform Bill would “improve the burdensome GDPR, allowing information to be shared more effectively and securely between public bodies.” So far, no time frame for the adoption of the new law has been published.
31. March 2022
After the British government announced reforms to UK’s data protection system last year, the Secretary of State submitted on February 2nd, 2022, a framework to the Parliament to regulate international data transfers and replace the EU Standard Contractual Clauses (SCC). As no objections were raised and the Parliament approved the documents, they entered into force on March 21st, 2022.
The set of rules consists of the International Data Transfer Agreement (IDTA), the International Data Transfer Addendum to the European Commission’s SCC for international data transfers (Addendum) and a Transitional Provisions document. The transfer rules are issued under Section 119A of the Data Protection Act 2018 and take into account the binding judgement of the European Court of Justice in the case commonly referred to as “Schrems II”.
The documents serve as a new tool for compliance with Art. 46 UK GDPR for data transfers to third countries and broadly mirror the rules of the EU GDPR. The UK government also retained the ability to issue its own adequacy decisions regarding data transfers to other third countries and international organizations.
The transfer rules are of immediate benefit to organizations transferring personal data outside the UK. In addition, the transitional provisions allow organizations to rely on the EU SCC until March 21st, 2024, for contracts entered into up to and including September 21st, 2022. However, this is subject to the condition that the data processing activities remain unchanged and that the clauses ensure adequate safeguards.
29. March 2022
On March 25th, 2022, the United States and the European Commission have committed to a new Trans-Atlantic Data Privacy Framework that aims at taking the place of the previous Privacy Shield framework.
The White House stated that the Trans-Atlantic Data Privacy Framework “will foster trans-Atlantic data flows and address the concerns raised by the Court of Justice of the European Union when it struck down in 2020 the Commission’s adequacy decision underlying the EU-US Privacy Shield framework”.
According to the joint statement of the US and the European Commission, “under the Trans-Atlantic Data Privacy Framework, the United States is to put in place new safeguards to ensure that signals surveillance activities are necessary and proportionate in the pursuit of defined national security objectives, establish a two-level independent redress mechanism with binding authority to direct remedial measures, and enhance rigorous and layered oversight of signals intelligence activities to ensure compliance with limitations on surveillance activities”.
This new Trans-Atlantic Data Privacy Framework has been a strenuous work in the making and reflects more than a year of detailed negotiations between the US and EU led by Secretary of Commerce Gina Raimondo and Commissioner for Justice Didier Reynders.
It is hoped that this new framework will provide a durable basis for the data flows between the EU and the US, and underscores the shared commitment to privacy, data protection, the rule of law, and the collective security.
Like the Privacy Shield before, this new framework will represent a self-certification with the US Department of Commerce. Therefore, it will be crucial for data exporters in the EU to ensure that their data importers are certified under the new framework.
The establishment of a new “Data Protection Review Court” will be the responsible department in cases of the new two-tier redress system that will allow EU citizens to raise complaints in cases of access of their data by US intelligence authorities, aiming at investigating and resolving the complaints.
The US’ commitments will be concluded by an Executive Order, which will form the basis of the adequacy decision by the European Commission to put the new framework in place. While this represents a quicker solution to reach the goal, it also means that Executive Orders can be easily repealed by the next government of the US. Therefore, it remains to be seen if this new framework, so far only agreed upon in principle, will bring the much hoped closure on the topic of trans-Atlantic data flows that is intended to bring.
24. March 2022
On March 16, 2022, Google announced the launch of its new analytics solution, “Google Analytics 4”. Among other things, “Google Analytics 4” aims to address the most recent data protection developments regarding the use of analytical cookies and the transfers tied to such processing.
The announcement of this new launch comes following 101 complaints made by the non-governmental organization None of Your Business (NOYB) complaints with 30 EEA countries’ data protection authorities (DPA). Assessing the data transfer from the EU to the US after the Schrems II decision of the CJEU for the use of Google Analytics, the French and Austrian DPAs ruled that the transfer of EU personal data from the EU to the U.S. through the use of the Google Analytics cookies is unlawful under the GDPR.
In the press release, Google states that “Google Analytics 4 is designed with privacy at its core to provide a better experience for both our customers and their users. It helps businesses meet evolving needs and user expectations, with more comprehensive and granular controls for data collection and usage.”
However, the most important change that the launch of “Google Analytics 4” will have on the processing of personal data is that it will no longer store users’ IP addresses. This will limit the data processing and resulting transfers that Google Analytics was under scrutiny for in the EU, however it is unclear at this point if the EU DPAs will change their opinion on the use of Google Analytics with this new version.
According to the press release, the current Google Analytics will be suspended starting July 2023, and Google is recommending companies to move onto “Google Analytics 4” as soon as possible.
25. January 2022
The European Data Protection Supervisor (EDPS) ruled that the European Parliament (EP) offended against a judgement of the European Court of Justice (ECJ) by transferring data to the US using US origin tech tools on their website for COVID-19 tests. This judgement relies on a complaint that involves misleading cookie banners, uncertain data privacy statements and unlawful data transfers from the EU to the US.
The ECJ makes clear that the transfer of personal data from the EU to the US is topic of strict conditions. Websites can only transfer data to the US if a certain security level is given. In this case there was not such a security level available.
The misleading cookie banners were so vague that the cookies were not listed in total and some differences between language options became appearent. Therefore, the website users could not give their valid consent.
Furthermore, the data privacy information were not clear and transparent, in that they refer to an incorrect legal basis for the processing. The given references were also in violation of transperency and requests of information.
Even during the process the EP tried to improve the technical deficits.
The EDPS issued a caution because in contrast to national data protection authorities it can only sentence under certain conditions, which were not given in this case. In result, it imposed a cease and desist order with a one month deadline for the EP to adjust the compliance.
30. December 2021
On December 17th, 2021, the European Commission (Commission) announced in a statement it had adopted an adequacy decision for the transfer of personal data from the European Union (EU) to the Republic of Korea (South Korea) under the General Data Protection Regulation (GDPR).
An adequacy decision is one of the instruments available under the GDPR to transfer personal data from the EU to third countries that ensure a comparable level of protection for personal data as the EU. It is a Commission decision under which personal data can flow freely and securely from the EU to the third country in question without any further conditions or authorizations being required. In other words, the transfer of data to the third country in question can be handled in the same way as the transfer of data within the EU.
This adequacy decision allows for the free flow of personal data between the EU and South Korea without the need for any further authorization or transfer instrument, and it also applies to the transfer of personal data between public sector bodies. It complements the Free Trade Agreement (FTA) between the EU and South Korea, which entered into force in July 2011. The trade agreement has led to a significant increase in bilateral trade in goods and services and, inevitably, in the exchange of personal data.
Unlike the adequacy decision regarding the United Kingdom, this adequacy decision is not time-limited.
The Commission’s statement reads:
The adequacy decision will complement the EU – Republic of Korea Free Trade Agreement with respect to personal data flows. As such, it shows that, in the digital era, promoting high privacy and personal data protection standards and facilitating international trade can go hand in hand.
In South Korea, the processing of personal data is governed by the Personal Information Portection Act (PIPA), which provides similar principles, safeguards, individual rights and obligations as the ones under EU law.
An important step in the adequacy talks was the reform of PIPA, which took effect in August 2020 and strengthened the investigative and enforcement powers of the Personal Information Protection Commission (PIPC), the independent data protection authority of South Korea. As part of the adequacy talks, both sides also agreed on several additional safeguards that will improve the protection of personal data processed in South Korea, such as transparency and onward transfers.
These safeguards provide stronger protections, for example, South Korean data importers will be required to inform Europeans about the processing of their data, and onward transfers to third countries must ensure that the data continue to enjoy the same level of protection. These regulations are binding and can be enforced by the PIPC and South Korean courts.
The Commission has also published a Q&A on the adequacy decision.
25. November 2021
On November 19th, 2021, the European Data Protection Board (EDPB) published a new set of draft Guidelines 05/2021 on the interplay between the EU General Data Protection Regulation’s (GDPR) territorial scope, and the GDPR’s provisions on international data transfers.
The EDPB stated in their press release that “by clarifying the interplay between the territorial scope of the GDPR (Art. 3) and the provisions on international transfers in Chapter V, the Guidelines aim to assist controllers and processors in the EU in identifying whether a processing operation constitutes an international transfer, and to provide a common understanding of the concept of international transfers.”
The Guidelines set forth three cumulative criteria to consider in determining whether a processing activity qualifies as an international data transfer under the GDPR, namely:
- the exporting controller or processor is subject to the GDPR for the given processing activity,
- the exporting controller or processor transmits or makes available the personal data to the data importer (e.g., another controller, joint controller, or a processor and
- the data importer is in a third country (or is an international organization), irrespective of whether the data importer or its processing activities are subject to the GDPR.
If all three requirements are met, the processing activity is to be considered an international data transfer under the GDPR, which results in the requirements of Chapter V of the GDPR to be applicable.
The Guidelines further clarify that the safeguards implemented to accommodate the international data transfer must be tailored to the specific transfer at issue. In an example, the EDPB indicates that the transfer of personal data to a controller in a third country that is subject to the GDPR will generally require fewer safeguards. In such a case, the transfer tool should focus on the elements and principles that are specific to the importing jurisdiction. This includes particularly conflicting national laws, government access requests in the receiving third country and the difficulty for data subjects to obtain redress against an entity in the receiving third country.
The EDPB offers its support in developing a transfer tool that would cover the above-mentioned situation.
The Guidelines are open for public consultation until January, 31st, 2022.
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