In October 2019, the UK and U.S. Governments signed an agreement on cross-border law enforcement demands for data from Communication Service Providers (the “Agreement”, which we described in our earlier post here). Only now, however, have the two countries completed the procedural steps required to bring the Agreement into force. On July 21, 2022
8 Eye-catching Reforms in the UK Government’s Response to its Public Consultation on Data Protection Law
The UK Government recently published its long-awaited response to its data reform consultation, ‘Data: A new direction’ (see our post on the consultation, here).
As many readers are aware, following Brexit, the UK Government has to walk a fine line between trying to reduce the compliance burden on organizations and retaining the ‘adequacy’ status that the European Commission granted in 2021 (see our post on the decision, here).
While we’ll have to wait to review the detail of the final legislation, we outline below some of the more eye-catching proposals for reform.
Calculating GDPR fines: EDPB publishes proposals for a harmonized methodology
The most significant change that GDPR made to EU data privacy law was to enhance enforcement and create a framework for increased fines for non-compliance. Four years after the GDPR started to apply, and as enforcement action picks up across the EU, the EDPB has finally issued draft guidelines on the calculation of administrative fines
UK Government calls for views in three areas to assess whether action is needed to enhance security of data centres and cloud services
The UK Government has issued a “call for views” on the current level of physical, technical and organizational security provided by data center operators (i.e. colocation service providers, not businesses that operate their own data centers) and cloud service providers (including providers of infrastructure-as-a-service, platform-as-a-service, and managed services). The Government intends to use
UK Privacy and Digital Policy & Legislative Roundup
In the Queen’s Speech on 10 May 2022, the UK Government set out its legislative programme for the months ahead. This includes: reforms to UK data protection laws (no details yet); confirmation that the government will strengthen cybersecurity obligations for connected products and make it easier for telecoms providers to improve the UK’s digital infrastructure; and new rules to enable the use of self-driving cars on public roads. In addition, the government confirmed its plans to move forward with the Online Safety Bill. As part of the government’s broader agenda to “level up” the UK and provide a post-Brexit economic dividend, many of the legislative initiatives referenced in the Queen’s Speech are presented as seeking to encourage greater use of data and technology to support innovation and enable growth.
We summarize below the key digital policy announcements in the Queen’s Speech and how they fit into wider developments in the UK’s regulatory landscape.
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Regulators and Activists Increase Scrutiny on Use of Cookies and Cookie Banner Design
As many readers will be aware, a key enforcement trend in the privacy sphere is the increasing scrutiny by regulators and activists of cookie banners and the use of cookies. This is a topic that we have been tracking on the Inside Privacy blog for some time. Italian and German data protection authorities have
European Commission Adopts Final UK Adequacy Decisions
On June 28, 2021, the European Commission adopted two decisions finding that the UK’s data protection regime provides an “adequate” level of protection for personal data transferred to the UK from the EU. The first decision covers transfers governed by the GDPR, and permits private companies located in the EU to continue to transfer personal data to the UK without the need for additional arrangements (such as the Commission’s new Standard Contractual Clauses (“SCCs”), which we discuss here). The second decision covers transfers under the Data Protection and Law Enforcement Directive, and permits EU law enforcement agencies to continue to transfer personal data to their counterparts in the UK.
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European Commission Publishes Draft UK Adequacy Decisions
On February 19, 2021, the European Commission published two draft decisions finding that UK law provides an adequate level of protection for personal data. The first would allow private companies in the EU to continue to transfer personal data to the UK without the need for any additional safeguards (e.g., the Commission’s standard contractual clauses), while the second would allow EU law enforcement agencies to transfers personal data subject to Directive 2016/680 — the Data Protection and Law Enforcement Directive (LED) — to their UK counterparts.
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Proposed New EU Cyber Rules Introduce More Onerous Requirements and Extend to More Sectors
In addition to releasing the new EU Cybersecurity Strategy before the holidays (see our post here), the Commission published a revised Directive on measures for high common level of cybersecurity across the Union (“NIS2”) and a Directive on the resilience of critical entities (“Critical Entities Resilience Directive”). In this blog post, we summarize key points relating to NIS2, including more onerous security and incident reporting requirements; extending requirements to companies in the food, pharma, medical device, and chemical sectors, among others; and increased powers for regulators, including the ability to impose multi-million Euro fines.
The Commission is seeking feedback on NIS2 and the Critical Entities Resilience Directive, and recently extended its original deadline of early February to March 11, 2021 (responses can be submitted here and here).
Twitter Fine: a View into the Consistency Mechanism, and “Constructive Awareness” of Breaches
On December 15, 2020, the Irish Data Protection Commission (“DPC”) fined Twitter International Company (“TIC”) EUR 450,000 (USD 500,000) following a narrow investigation into TIC’s compliance with obligations to (a) notify a personal data breach within 72 hours under Article 33(1) GDPR; and (b) document the facts of the breach under Article 33(5) GDPR. The process to investigate these points took a little under two years, and resulted in a decision of nearly 200 pages.
This is the first time that the DPC has issued a GDPR fine as a lead supervisory authority (“LSA”) after going through the “cooperation” and “consistency” mechanisms that enable other authorities to raise objections and the EDPB to resolve disagreements. The delay in the process and details in the EDPB binding resolution suggest that this was a somewhat arduous process. Several authorities raised objections in response to the DPC’s draft report – regarding the identity of the controller (Irish entity and/or U.S. parent), the competence of the DPC to be LSA, the scope of the investigation, the size of the fine, and other matters. Following some back and forth — most authorities maintained their objections despite the DPC’s explanations — the DPC referred the matter to the EDPB under the GDPR’s dispute resolution procedure. The EDPB considered the objections and dismissed nearly all of them as not being “relevant and reasoned”, but did require the DPC to reassess the level of the proposed fine.
Process aside, the DPC’s decision contains some interesting points on when a controller is deemed to be “aware” of a personal data breach for the purpose of notifying a breach to a supervisory authority. This may be particularly relevant for companies based in Europe that rely on parent companies in the US and elsewhere to process data on their behalf. The decision also underlines the importance of documenting breaches and what details organizations should include in these internal reports.
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