On November 15, 2022, the Italian Supreme Court held that an Italian court or competent data protection authority has jurisdiction to issue a global delisting order. A delisting order requires a search engine to remove certain search results about individuals if the data subject’s privacy interests prevail over the general right to expression and information, and the economic interest of the search engine. The case was brought by an Italian individual, who requested a worldwide delisting order, concerning all versions of the search engine, due to potential damage to the applicant's professional interests outside of the European Union.
On November 30, 2022, the UK government confirmed that the Network and Information Systems (“NIS”) Regulations 2018 (“NIS Regulations”) will be strengthened to protect essential and digital services against cyber attacks. The changes bring providers of outsourced IT and managed service providers (“MSPs”) into scope of the NIS Regulations. The announcement comes in response to a public consultation held in January this year.
On November 23, 2022, the UK government’s Department for Digital, Culture, Media & Sport (“DCMS”) announced that it had completed its assessment of South Korea’s personal data legislation, and concluded that sufficiently strong privacy laws are in place to protect UK personal data transferred to South Korea while upholding the rights and protections of UK citizens.
On November 17, 2022, the UK data protection regulator, the Information Commissioner’s Office (“ICO”), published updated guidance on international transfers that includes a new section on transfer risk assessments (“TRAs”) and a TRA tool.
In its statement regarding the updated guidance, the ICO describes the TRA guidance as “an alternative approach to the one put forward by the European Data Protection Board” and says its aim is “to find an alternative, achievable approach delivering the right protection for the people the data is about, whilst ensuring that the assessment is reasonable and proportionate.”
On November 1, 2022, the Digital Markets Act (the “DMA”) entered into force. The DMA introduces new rules for certain core platforms services acting as “gatekeepers” in the digital sector (including search engines, social networks, online advertising services, cloud computing, video-sharing services, messaging services, operating systems and online intermediation services). The DMA also aims to prevent such platforms from imposing unfair conditions on businesses and consumers, and to ensure the openness of important digital services.
On November 2, 2022, the ICO issued to the UK Department for Education (“DfE”) a formal reprimand following an investigation into the sharing of personal data stored on the Learning Records Service (“LRS”), a database which provides a record of pupils’ qualifications that the DfE has overall responsibility for. The investigation found that the DfE’s poor due diligence meant the LRS database was being used by Trust Systems Software UK Ltd (trading as Trustopia), a third party screening firm, to check whether people opening online gambling accounts were 18. Trustopia was found to have had access from September 2018 to January 2020, during which it performed over 20,000 searches on children whose personal data was in the LRS database.
On October 18, 2022, the European Commission published a report, titled Information Frictions and Public Policies: Approaching the Regulation and Supervision of Decentralized Finance (“DeFi”) (the “Report”). The Report discusses the need to adapt existing policy frameworks to account for the change brought about by DeFi to the underlying information structure upon which financial services are provided. Unlike traditional finance, DeFi applications provide financial services based on blockchain technology, i.e., without requiring any intermediary agent and instead relying on automated protocols that are encoded in public digital contracts universally accessible and maintained by an open pool of pseudonymous miners.
On September 23, 2022, the Centre for Information Policy Leadership (“CIPL”) at Hunton Andrews Kurth submitted a response to the UK Department for Digital, Culture, Media & Sport (“DCMS”) on its Consultation on establishing a pro-innovation approach to regulating AI (the “Response”).
On October 24, 2022, the UK Information Commissioner’s Office (“ICO”) issued a £4.4 million fine to Interserve Group Limited for failing to keep employee personal data secure, which violates Article 5(1)(f) and Article 32 of the EU General Data Protection Regulation (“GDPR”), during the period of March 2019 to December 2020. The ICO determined that such violations rendered Interserve vulnerable to the cyber attack which took place between March 2020 and May 2020, affecting the personal data of up to 113,000 Interserve employees. The compromised data included contact details, national insurance numbers and bank account details, as well as special category data, including ethnic origin, religion, details of any disabilities, sexual orientation and health information.
On October 17, 2022, the French Data Protection Authority (the “CNIL”) imposed a €20 million fine on Clearview AI for unlawful use of facial recognition technology. The fine was imposed after the CNIL’s prior formal notice remained unaddressed by Clearview AI.
On October 12, 2022, the UK Information Commissioner's Office (“ICO”) launched a public consultation on its draft guidance on employers’ obligations when monitoring at work (“Draft Guidance”). In addition, the ICO has published an impact scoping document, which outlines some of the context and potential impacts of the Draft Guidance (“Impact Scoping Document”).
On October 7, 2022, President Biden signed Executive Order on Enhancing Safeguards for United States Signals Intelligence Activities, which provides a new framework for legal data transfers between the European Union and the United States. The legal basis for transatlantic data transfers has been uncertain since 2020, when the European Court of Justice (“ECJ”) declared the previous framework, the EU-U.S. Privacy Shield, invalid under EU law.
On October 3, 2022, the U.S. Department of Justice (“DOJ”) announced that the agreement between the U.S. Government and the UK Government on Access to Electronic Data for the Purpose of Countering Serious Crime (the “CLOUD Act Agreement”) entered into force, effective the same day. The CLOUD Act Agreement, which is authorized by the U.S. Clarifying Lawful Overseas Use of Data (“CLOUD”) Act, is the first of its kind and will allow each country’s investigators to gain access to data held by service providers in the other country, for the purpose of combating serious crime. According to DOJ, this “will greatly enhance the ability of the United States and the United Kingdom to prevent, detect, investigate and prosecute serious crime, including terrorism, transnational organized crime, and child exploitation, among others.”
Background
On September 15, 2022, the European Commission presented its proposal for a Regulation on horizontal cybersecurity requirements for products with digital elements (the “Cyber Resilience Act”). According to the European Commission, the Cyber Resilience Act will be the first EU-wide legislation introducing “cybersecurity requirements for products with digital elements, throughout their whole lifecycle.”
On September 21, 2022, Denmark’s data protection authority Datatilsynet (“Danish DPA”) announced its guidance that Google Analytics, Google’s audience measurement tool, is not compliant with the EU General Data Protection Regulation (“GDPR”), as the tool transfers personal data to the United States which, following Schrems II, does not offer an adequate level of data protection.
On September 5, 2022, the Irish Data Protection Commissioner (the “DPC”) imposed a €405,000,000 fine on Instagram (a Meta-owned social media platform) for violations of the EU General Data Protection Regulation’s (“GDPR’s”) rules on the processing of children’s personal data.
On August 5, 2022, French AdTech company Criteo announced that it had received a report from the French Data Protection Authority (“CNIL”) on August 3, 2022, claiming various infringements of the EU General Data Protection Regulation (“GDPR”) and proposing to impose a €60,000,000 fine against Criteo. The proposed fine follows complaints filed by privacy NGO ‘Privacy International’ against Criteo.
On July 7, 2022, the Irish Data Protection Commission (the “DPC”) sent a draft decision to other EU data protection authorities, proposing to block Meta’s transfers of personal data from the EU to the United States.
On June 23, 2022, Italy’s data protection authority (the “Garante”) determined that a website’s use of the audience measurement tool Google Analytics is not compliant with the EU General Data Protection Regulation (“GDPR”), as the tool transfers personal data to the United States, which does not offer an adequate level of data protection. In making this determination, the Garante joins other EU data protection authorities, including the French and Austrian regulators, that also have found use of the tool to be unlawful.
On May 12, 2022, the European Data Protection Board (“EDPB”) adopted Guidelines 04/2022 on the calculation of administrative fines under the EU General Data Protection Regulation (“GDPR”) (the “Guidelines”). The Guidelines are intended to harmonize the methodology supervisory authorities (“SAs”) use when calculating the amount of a GDPR fine and provide illustrative examples to help organizations understand the calculation method.
On May 11, 2022, the French Data Protection Authority (the “CNIL”) published its Annual Activity Report for 2021 (the “Report”). The Report provides an overview of the CNIL’s enforcement activities in 2021. The report notably shows a significant increase in the CNIL’s activity.
On May 10, 2022, as part of the Queen’s Speech, the UK government announced its intention to introduce a Data Reform Bill (the “Bill”). The UK government’s background and briefing notes to the Queen’s Speech state that the purpose of the Bill is to “take advantage of the benefits of Brexit to create a world class data rights regime…that reduces burdens on businesses, boosts the economy, helps scientists to innovate and improves the lives of people in the UK.”
On April 23, 2022, the European Commission announced that the European Parliament and EU Member States had reached consensus on the Digital Services Act (“DSA”), which establishes accountability standards for online platforms regarding illegal and harmful content.
On February 28, 2022, the Emirate of Dubai enacted Law No. 4 of 2022 on the Regulation of Virtual Assets (“VAL”) and established the Dubai Virtual Assets Regulatory Authority (“VARA”). By establishing a legal framework for businesses related to virtual assets, including crypto assets and non-fungible tokens (NFTs), this landmark law reflects Dubai’s vision to become one of the leading jurisdictions for entrepreneurs and investors of blockchain technology.
On April 7, 2022, the European Data Protection Board (the “EDPB”) released a statement on the announcement of a new Trans-Atlantic Data Privacy Framework (the “Statement”).
On March 24, 2022, the European Union unveiled the final text of the Digital Markets Act (the “DMA”). The final text of the DMA was reached following trilogue negotiations between the European Commission, European Parliament and EU Member States (led by the French Presidency at the European Council). The final text retains essentially the same features as the previous draft text but does include some notable changes.
On March 25, 2022, the European Commission and United States issued a joint statement announcing an agreement in principle on a new Trans-Atlantic Data Privacy Framework (the “Joint Statement”).
On February 22, 2022, the European Data Protection Board (the “EDPB”) adopted its final Guidelines 04/2021 on Codes of Conduct as tools for transfers (the “Guidelines”), following a public consultation that took place in 2021.
On March 16, 2022, Google announced the launch of its new analytics solution, “Google Analytics 4.” Google Analytics 4 aims, among other things, to address recent developments in the EU regarding the use of analytics cookies and data transfers resulting from such use.
On February 23, 2022, the European Commission adopted a Proposal for a Regulation designed to harmonize rules on the fair access to and use of data generated in the EU across all economic sectors (the “Data Act”). The Data Act is intended to “ensure fairness in the digital environment, stimulate a competitive data market, open opportunities for data-driven innovation and make data more accessible for all.” Importantly, the Data Act applies to all data generated in the EU, not only personal data, which is regulated by the General Data Protection Regulation (“GDPR”).
On February 15, 2022, the French Data Protection Authority (the “CNIL”) published its enforcement priority topics for 2022. Each year, the CNIL conducts numerous investigations in response to complaints, data breach notifications and ongoing events, or based on previously established enforcement priorities.
On February 10, 2022, the French Data Protection Authority (the “CNIL”) ruled the transfer of EU personal data from the EU to the U.S. through the use of the Google Analytics cookie to be unlawful. In its decision, the CNIL held that an organization using Google Analytics was in violation of the GDPR’s data transfer requirements. The CNIL ordered the organization to comply with the GDPR, and to stop using Google Analytics, if necessary.
On February 2, 2022, the Litigation Chamber of the Belgian Data Protection Authority (the “Belgian DPA”) imposed a €250,000 fine against the Interactive Advertising Bureau Europe (“IAB Europe”) for several alleged infringements of the EU General Data Protection Regulation (the “GDPR”), following an investigation into IAB Europe Transparency and Consent Framework (“TCF”).
On February 2, 2022, the Secretary of State placed the UK Information Commissioner’s Office's (“ICO's ”) final international data transfer agreement (“IDTA”) and international data transfer addendum to the European Commission’s standard contractual clauses (“SCCs”) for international data transfers (“Addendum”) before the European Parliament. The IDTA and Addendum are set to come into force on March 21, 2022, but the ICO advises that they are of use to organizations immediately. The ICO also has stated that it intends to publish additional guidance on use of the IDTA and Addendum.
Organizations increasingly use artificial intelligence- (“AI”) driven solutions in their day-to-day business operations. Generally, these AI-driven solutions require the processing of significant amounts of personal data for the AI model’s own training, which often is not the purpose for which the personal data originally was collected. There is a clear tension between such further use of vast amounts of personal data and some of the key data protection principles outlined in EU privacy regulations. On the occasion of Data Privacy Day 2022, Hunton privacy attorneys ...
The Austrian data protection authority (the “Austrian DPA”) recently published a decision in a case brought against an Austrian website provider and Google by the non-governmental organization co-founded by privacy activist Max Schrems, None of Your Business (“NOYB”). The Austrian DPA ruled that the use of Google Analytics cookies by the website operator violates both Chapter V of the EU General Data Protection Regulation (“GDPR”), which establishes rules on international data transfers, and the Schrems II judgment of the Court of Justice of the European Union.
On January 12, 2022, the French Data Protection Authority (the “CNIL”) published guidelines on the re-use of personal data by data processors for their own purposes (such as product improvement or the development of new products and services) under the EU General Data Protection Regulation (“GDPR”) (the “Guidelines”). This post outlines key takeaways from the Guidelines.
On January 5, 2022, the European Data Protection Supervisor (“EDPS”) issued a decision against the European Parliament (“EP”). The case resulted from a complaint submitted by certain Members of the European Parliament (“MEPs”) who alleged that the Parliament’s use of cookies violated data protection law, including requirements regarding the transfer of personal data outside of the EU. The EDPS is responsible for overseeing compliance of data protection rules by the EU institutions.
On December 31, 2021, the French Data Protection Authority (the “CNIL”) imposed a €150,000,000 fine on Google and a €60,000,000 fine on Facebook (now Meta) for violations of French rules on the use of cookies.
In a letter addressed to certain members of the European Parliament (“MEPs”), European Commissioner for Justice Reynders refuted some of the criticism that has been raised against the Irish Data Protection Commissioner (“DPC”).
On December 15, 2021, the European Parliament adopted its position on the proposal for a Digital Markets Act (“DMA”), ahead of negotiations with the Council of the European Union.
The DMA introduces new rules for certain core platforms services acting as “gatekeepers,” (including search engines, social networks, online advertising services, cloud computing, video-sharing services, messaging services, operating systems and online intermediation services) in the digital sector and aims to prevent them from imposing unfair conditions on businesses and consumers and to ensure the openness of important digital services.
On December 17, 2021, the European Commission announced that it had adopted its adequacy decision on the Republic of Korea. The adequacy decision allows for the free flow of personal data between the EU and Korea, without any further need for authorization or additional transfer tool. The adequacy decision also covers transfers of personal data between public authorities.
On December 6, 2021, the Centre for Information Policy Leadership (“CIPL”) at Hunton Andrews Kurth LLP published a white paper on “Bridging the DMA and the GDPR – Comments by the Centre for Information Policy Leadership on the Data Protection Implications of the Draft Digital Markets Act” (the “White Paper”).
On November 30, 2021, the European Commission issued a press release indicating that the European Parliament and the Council of the EU (i.e., representatives of EU Member States) reached political agreement on the proposed EU Data Governance Act. The political agreement now will be subject to final approval by the European Parliament and the Council of the EU.
On November 18, 2021, the European Data Protection Board (“EDPB”) released a statement on the Digital Services Package and Data Strategy (the “Statement”). The Digital Services Package and Data Strategy is a package composed of several legislative proposals, including the Digital Services Act (“DSA”), the Digital Markets Act (“DMA”), the Data Governance Act (“DGA”), the Regulation on a European approach for Artificial Intelligence (“AIR”) and the upcoming Data Act (expected to be presented shortly). The proposals aim to facilitate the further use and sharing of personal data between more public and private parties; support the use of specific technologies, such as Big Data and artificial intelligence (“AI”); and regulate online platforms and gatekeepers.
On November 19, 2021, the European Data Protection Board (“EDPB”) published its draft Guidelines 05/2021 (the “Guidelines”) on the interplay between the application of Article 3 of the EU General Data Protection Regulation (“GDPR”), which sets forth the GDPR’s territorial scope, and the GDPR’s provisions on international data transfers. The Guidelines aim to assist organizations subject to the GDPR in identifying whether a data processing activity constitutes an international data transfer under the GDPR, as the GDPR does not define the term.
On October 28, 2021, the European Parliament’s Committee on Industry, Research and Energy adopted a draft directive on cybersecurity (“NIS2 Directive”). The NIS2 Directive will broaden the scope of the existing NIS Directive to apply to “important sectors,” such as waste management, postal services, chemicals, food, medical device manufacturers, digital providers and producers of electronics, in addition to “essential sectors.” The NIS2 Directive imposes specific cybersecurity requirements relating to incident response, supply chain security, encryption and vulnerability disclosure obligations. The NIS2 Directive also aims to establish better cooperation and information sharing between EU Member States, and create a common European vulnerability database.
On October 13, 2021, the European Data Protection Board (“EDPB”) adopted Guidelines 10/2020 on restrictions under Article 23 of the EU General Data Protection Regulation (“GDPR”) (the “Guidelines”) following public consultation. Article 23 of the GDPR permits EU Member States to impose restrictions on data subject rights as long as the restrictions respect the essence of the fundamental rights and freedoms of individuals, and are necessary and proportionate measures in a democratic society to safeguard, for example, national security, defense or public security. The data subject rights to which the restrictions may apply are those set out in Articles 12-22 (e.g., rights of access, erasure), Article 34 (communication of a data breach to individuals) and Article 5 (the data processing principles) to the extent that its provisions correspond to data subject rights.
On September 29, 2021, the Centre for Information Policy Leadership (“CIPL”) at Hunton Andrews Kurth published a paper on the Draft ePrivacy Regulation (“ePR”), in the context of the Trilogue Discussions between the EU Commission, EU Council and EU Parliament (the “Paper”).
The Irish Data Protection Commissioner (“DPC”) has submitted a draft decision on Facebook Ireland Limited’s (“Facebook”) data protection compliance to other European regulators under the cooperation mechanism of the EU General Data Protection Regulation (“GDPR”) (the “Draft Decision”). The DPC proposes a fine between €28 and €36 million (i.e., up to $42 million) for infringements of the transparency obligations under the GDPR, specifically with respect to the legal basis upon which Facebook relied. In addition, the Draft Decision proposes imposing an order on Facebook to bring its terms of service and Data Policy into compliance within three months. However, the DPC indicates in its Draft Decision that Facebook is permitted to rely on contractual necessity as a legal basis for its personalized advertising, taking the view that this constitutes a core element of Facebook’s service.
On September 27, 2021, the Centre for Information Policy Leadership (“CIPL”) at Hunton Andrews Kurth published a white paper on the “GDPR Enforcement Cooperation and the One-Stop-Shop (“OSS”) - Learning from the First Three Years” (the “Paper”). The Paper identifies the challenges faced by the OSS, defines CIPL’s position, and proposes possible solutions to improve the OSS mechanism, taking into account the European Data Protection Board’s (“EDPB”) recent work and decisions by the Court of Justice of the European Union (“CJEU”).
On September 27, 2021, the transition period allowing companies to continue using the old EU Standard Contractual Clauses (“SCCs”) for new transfers from the EU to a third country ended. Companies entering into new transfer agreements incorporating the SCCs must now use those published by the European Commission on June 4, 2021 (the “new SCCs”). Transfers from the UK that rely on SCCs must continue to use the old SCCs.
On September 27, 2021, the European Data Protection Board (“EDPB”) announced that it had adopted an opinion on the European Commission’s draft adequacy decision for the Republic of Korea (the “Opinion”).
On September 27, 2021, the European Data Protection Board (the “EDPB”) announced that it established a taskforce to coordinate the response to complaints filed with several EU data protection authorities (“DPAs”) by the non-governmental organization None of Your Business (“NOYB”) in relation to cookie banners.
On September 10, 2021, the UK Government Department for Digital, Culture, Media & Sport (“DCMS”) launched a consultation on its proposed reforms to the UK data protection regime. The consultation reflects DCMS’s effort to deliver on Mission 2 of the National Data Strategy, which is “to secure a pro-growth and trusted data regime in the UK.” Organizations are encouraged to provide input on a range of data protection proposals, some of which are outlined below. The consultation will close on November 19, 2021, and the Centre for Information Policy Leadership (“CIPL”) will consult with members to prepare a formal response to the consultation.
The Centre for Information Policy Leadership (“CIPL”), a global privacy and security think tank founded in 2001 by leading companies and Hunton Andrews Kurth LLP, is celebrating 20 years of working with industry leaders, regulatory authorities and policymakers to develop global solutions and best practices for privacy and responsible data use.
On August 19, 2021, the Belgian Council of State confirmed a decision of the regional Flemish Authorities to contract with an EU branch of a U.S. company using Amazon Web Services (“AWS”).
On August 27, 2021, the Federal Data Protection and Information Commissioner (“Swiss DPA”) announced that the new EU Standard Contractual Clauses (the “SCCs”) may be relied on to legitimize transfers of personal data from Switzerland to countries without an adequate level of data protection, provided that the necessary amendments and adaptations are made for use under Swiss data protection law.
On September 2, 2021, Ireland’s Data Protection Commission (“DPC”) announced a fine of €225 million ($266 million) against WhatsApp Ireland Ltd (“WhatsApp”) for failure to meet the transparency requirements of Articles 12-14 of the EU General Data Protection Regulation (“GDPR”). This fine represents a more than four-fold increase in the €30-50 million fine that was proposed in a draft decision issued by the DPC in December 2020. Due to the cross-border nature of WhatsApp’s data processing activities, the DPC’s draft decision was reviewed by other relevant supervisory authorities, as required by the cooperation and consistency mechanism under Chapter VII of the GDPR. Eight other EU regulators objected to the DPC’s draft decision. Their objections were referred to the European Data Protection Board (“EDPB”), in accordance with the dispute resolution procedure under Article 65(1)(a) of the GDPR, after the DPC failed to reach a consensus with the objecting regulators.
On August 26, 2021, the UK Department of Culture, Media and Sport (“DCMS”) made news by publishing a document indicating its intent to begin making adequacy decisions for UK data transfers to foreign jurisdictions and by announcing its preferred candidate for the position of new UK Information Commissioner.
On August 9, 2021, the UK First-Tier Tribunal (General Regulatory Chamber) (“FTT”) reduced a fine imposed by the UK Information Commissioner’s Office (“ICO”) against Doorstep Dispensaree Ltd (“DDL”) from £275,000 to £92,000, a reduction of approximately two thirds. DDL, which supplies medicines to customers and care homes, was fined in December 2019 for failure to comply with the EU General Data Protection Regulation (“GDPR”). The ICO also issued an Enforcement Notice, requiring DDL to take certain actions to bring its processing into compliance.
Laura Liguori of Portolano Cavallo reports that on June 10, 2021, the Italian Data Protection Authority (Garante or “DPA”) adopted a new version of its guidelines for cookies and other tracking mechanisms (the “Guidelines”).
On July 30, 2021, the UK High Court handed down its judgment in the case of Warren v DSG Retail Ltd [2021] EWHC 2168 (QB), determining that the claimant could not seek damages on the basis of misuse of personal information, breach of confidence or common law negligence following a data breach.
On August 2, 2021, the Italian Data Protection Authority (Garante per la protezione dei dati personali, “Garante”) announced that it had levied a €2,500,000 fine on Deliveroo Italy s.r.l. for the unlawful processing of personal data of approximately 8,000 Deliveroo riders, and various infringements of the EU Genera Data Protection Regulation (the “GDPR”).
On July 29, 2021, the Centre for Information Policy Leadership (“CIPL”) at Hunton Andrews Kurth submitted its response to the European Commission’s Consultation on the Draft Artificial Intelligence Act (the “Act”). Feedback received as part of this consultation will feed into discussions with the European Parliament and the European Council as the proposal makes its way through the EU legislative process.
On July 16, 2021, the Luxembourg data protection authority (Commission nationale pour la protection des donées, “CNPD”) imposed a record-breaking €746 million fine on Amazon Europe Core S.à.r.l. for alleged violations of the EU General Data Protection Regulation (“GDPR”). The CNPD also ordered Amazon to revise certain of its practices. As Amazon has its EU headquarters in Luxembourg, the CNPD acts as Amazon’s lead supervisory authority in the EU.
On July 27, 2021, the Spanish Data Protection Authority (the “AEPD”) imposed a €2,520,000 fine on Spanish supermarket chain Mercadona, S.A. for unlawful use of a facial recognition system.
On June 29, 2021, the UK Department for Digital, Culture, Media and Sport (“DCMS”) published guidance for businesses on child online safety, which includes guidance on data protection and privacy, age-appropriate content, positive user interactions, and protecting children from online sexual exploitation and abuse.
On July 22, 2021, the Dutch Data Protection Authority (“Dutch DPA”) announced that it had imposed a €750,000 fine on TikTok for violating the privacy of young children namely for the company’s alleged lack of transparency.
On July 2, 2021, the Centre for Information Policy Leadership (“CIPL”) at Hunton Andrews Kurth published a white paper on How the Legitimate Interest Ground for Processing for Processing Enables Responsible Data Use and Innovation (the “Paper”). The Paper explains the growing importance of the legitimate interests legal basis for organizations, whether for routine or more complex and innovative data processing activities. It provides recommendations on how this legal basis should be interpreted, used and applied to unlock the value of data in today’s global connected world. Finally, the Paper includes examples of data processing activities where organizations currently rely on the legitimate interests legal basis, illustrated by 16 case studies that describe how organizations balance the legitimate interest of the controller and individuals’ rights and freedoms.
In an article originally published on Practical Law, and reproduced with the permission of the publishers, Hunton Andrews Kurth London partner Bridget Treacy discusses the European Commission’s long-awaited, and now finalized, standard contractual clauses (“SCCs”) for international transfers of personal data made under the EU General Data Protection Regulation (“GDPR”).
On July 6, 2021, it was reported that British Airways (“BA”), which is owned by International Consolidated Airlines Group, S.A, had settled a UK class action lawsuit relating to its 2018 data breach, in which approximately 430,000 data subjects were affected. The UK Information Commissioner’s Office (“ICO”) previously fined BA £20 million for the same breach, after finding that BA had failed to process the personal data of its customers in a manner that ensured appropriate security, as required under Article 5(1)(f) and Article 32 of the EU General Data Protection Regulation. This amount was significantly reduced from the ICO’s proposed fine of more than £183 million.
On June 30, 2021, the Centre for Information Policy Leadership (“CIPL”) at Hunton Andrews Kurth submitted its comments on the Irish Data Protection Commissioner’s (“DPC”) consultation on its Draft Regulatory Strategy for 2021-2026, in which the DPC sets out its vision for the next five years.
On June 28, 2021, the European Commission (the “Commission”) adopted two adequacy decisions for the United Kingdom, one under the General Data Protection Regulation (“GDPR”) and another under the Law Enforcement Directive. Their adoption means organizations in the EU can continue to transfer personal data to organizations in the UK without restriction, and will not need to rely upon data transfer mechanisms, such as the EU Standard Contractual Clauses, to ensure an adequate level of protection. The adoption comes just before the conditional interim regime under the EU-UK Trade and Cooperation Agreement, under which data could flow freely from the EU to the UK, was set to expire on June 30, 2021.
On June 21, 2021, following a public consultation, the European Data Protection Board (“EDPB”) published the final version of its recommendations on supplementary measures in the context of international transfer safeguards, such as Standard Contractual Clauses (“SCCs”) (the “Recommendations”).
On June 15, 2021, the Court of Justice of the European Union (the “CJEU”) released its judgment in case C-645/19 of Facebook Ireland Limited, Facebook Inc., Facebook Belgium BVBA v. the Belgian Data Protection Authority (“Belgian DPA”). We previously reported on the background of the case and the Advocate General’s opinion.
On June 11, 2021, the Belgian Data Protection Authority (“Belgian DPA”) released its 2020 Annual Report (the “Report”). Notably in 2020, the Belgian DPA focused on the supervision of initiatives to fight the COVID-19 pandemic involving data processing, while not losing sight of its other priorities, as identified in its Strategic Plan 2020-2025.
Due to the increased awareness of the importance of the protection of personal data, 2020 had a significant increase in the number of complaints, which were up 290.64%, and data breach notifications, which were up 25.09%, received by the Belgian DPA.
On May 25, 2021, the Grand Chamber of the European Court of Human Rights handed down its judgement in the case of Big Brother Watch and Others v. the United Kingdom, determining that the former surveillance regime in the UK violated Article 8 of the European Convention on Human Rights (“ECHR”), i.e., the right to respect for private and family life.
On June 4, 2021, the European Commission published the final version of the implementing decision on standard contractual clauses for transfers of personal data to third countries under the EU General Data Protection Regulation (“GDPR”), as well as the final version of the new standard contractual clauses (the “SCCs”). The European Commission had previously published draft versions of the implementing decision and the SCCs in November 2020.
On May 27, 2021, the European Data Protection Supervisor (the “EDPS”) announced that it has opened two investigations regarding (1) the use of cloud services provided by Amazon Web Services and Microsoft under Cloud II contracts by European Union institutions, bodies and agencies; and (2) the use of Microsoft Office 365 by the European Commission.
On May 26, 2021, the Court of Appeal handed down its judgment in the case of R (Open Rights Group and the3million) v Secretary of State for the Home Department and Others [2021] EWCA Civ 800, finding that the UK 2018 Data Protection Act’s (“DPA 2018”) “immigration exemption” is unlawful.
On May 20, 2021, the Belgian Data Protection Authority (“Belgian DPA”), as the lead authority (in collaboration with two co-reviewing authorities), announced that it had approved the EU Data Protection Code of Conduct for Cloud Service Providers (the “EU Cloud CoC”). The EU Cloud CoC is the first transnational EU code of conduct since the entry into force of the EU General Data Protection Regulation (the “GDPR”).
On May 12, 2021, the Dutch Data Protection Authority (Autoriteit Persoonsgegevens, the “Dutch DPA”) imposed a €525,000 fine on Locatefamily.com for failure to comply with the obligation imposed under Article 27 of the EU General Data Protection Regulation (“GDPR”) to appoint a representative in the EU.
On May 14, 2021, the Irish High Court dismissed Facebook Ireland’s (“Facebook”) challenge to the Irish Data Protection Commissioner’s (“DPC”) investigation into Facebook’s international transfers of personal data.
On May 11, 2021, the European Parliament issued a press release requesting that the European Commission amend its draft decisions on UK adequacy to more closely align with EU court rulings and the opinion of the European Data Protection Board (“EDPB”). The request came after the Parliament’s Civil Liberties Committee (the “Committee”) passed a resolution evaluating the Commission’s approach regarding the adequacy of the UK’s data protection regime. The Members of European Parliament (“MEPs”) stated that if the Commission’s implementing decisions are adopted without amendment, transfers of personal data to the UK should be suspended when there is the potential for indiscriminate access to personal data.
On May 2, 2021, the Norwegian data protection authority, Datatilsynet, notified Disqus Inc. (“Disqus”), a U.S. company owned by Zeta Global, of its intention to issue a fine of 25 million Norwegian Krone (approximately 2.5 million Euros). The preliminary fine was issued for failure to comply with the General Data Protection Regulation’s (“GDPR”) accountability, lawfulness and transparency requirements, primarily due to Disqus’ tracking of website visitors.
On April 27, 2021, the Portuguese Data Protection Authority (Comissão Nacional de Proteção de Dados, the “CNPD”) ordered the National Institute of Statistics (the “INE”) to suspend, within 12 hours, any international transfers of personal data to the U.S. or other third countries that have not been recognized as providing an adequate level of data protection.
On April 23, 2021, the Centre for Information Policy Leadership (“CIPL”) at Hunton Andrews Kurth submitted its response to the European Data Protection Board (“EDPB”) consultation on draft guidelines on virtual voice assistants (the “Guidelines”). The Guidelines were adopted on March 12, 2021 for public consultation.
On April 22, 2021, the Belgian Constitutional Court annulled (in French) the framework set forth by the Law of 29 May 2016 (the “Law”) requiring telecommunications providers to retain electronic communications data in bulk.
On April 21, 2021, the European Commission (the “Commission”) published its Proposal for a Regulation on a European approach for Artificial Intelligence (the “Artificial Intelligence Act”). The Proposal follows a public consultation on the Commission’s white paper on AI published in February 2020. The Commission simultaneously proposed a new Machinery Regulation, designed to ensure the safe integration of AI systems into machinery.
On April 14, 2021, the European Data Protection Board (“EDPB”) announced that it had adopted its Opinion on the draft UK adequacy decision issued by the European Commission on February 19, 2021. The EDPB’s Opinion is non-binding but will be persuasive. The adequacy decision will be formally adopted if it is approved by the EU Member States acting through the European Council. If the adequacy decision is adopted, transfers of personal data from the EU to the UK may continue following the end of the post-Brexit transition period without the implementation of a data transfer mechanism under the EU General Data Protection Regulation (“GDPR”), such as Standard Contractual Clauses.
On March 31, 2021, the Dutch Data Protection Authority (Autoriteit Persoonsgegevens, the “Dutch DPA”), announced a fine of €475,000 for Dutch headquartered online travel agency Booking.com for failure to report a data breach within 72 hours of becoming aware of the incident in 2019.
On March 25, 2021, the Centre for Information Policy Leadership at Hunton Andrews Kurth organized an expert roundtable on the EU Approach to Regulating AI–How Can Experimentation Help Bridge Innovation and Regulation? (the “Roundtable”). The Roundtable was hosted by Dragoș Tudorache, Member of Parliament and Chair of the Artificial Intelligence in the Digital Age (“AIDA”) Committee of the European Parliament. The Roundtable gathered industry representatives and data protection authorities (“DPAs”) as well Axel Voss, Rapporteur of the AIDA Committee.
On March 30, 2021, the European Commission (the “Commission”) announced the successful conclusion of the adequacy talks with the Republic of Korea.
On March 26, 2021, the Centre for Information Policy Leadership (“CIPL”) at Hunton Andrews Kurth submitted its comments on the Irish Data Protection Commissioner’s (“DPC”) draft guidance on safeguarding the personal data of children when providing online services, “Children Front and Centre—Fundamentals for a Child-Oriented Approach to Data Processing” (the “Draft Guidance”).
On March 15, 2021, the state Data Protection Authority of Bavaria (“Bavarian DPA”) declared the use of U.S. e-mail marketing service Mailchimp by a fashion magazine (acting as controller) in Bavaria impermissible due to non-compliance with Schrems II mitigation steps in relation to the transfer of e-mail addresses to Mailchimp in the U.S.
On March 22, 2021, the Centre for Information Policy Leadership (“CIPL”) at Hunton Andrews Kurth published its paper on delivering a risk-based approach to regulating artificial intelligence (the “Paper”), with the intention of informing current EU discussions on the development of rules to regulate AI.
On March 19, 2021, the Secretary of State for Digital, Culture, Media & Sport (“DCMS”) signed a Memorandum of Understanding (“MoU”) with the UK Information Commissioner’s Office (the “ICO”) with respect to new UK adequacy assessments following the UK’s departure from the European Union. The MoU sets out how DCMS and third countries will negotiate adequacy decisions, referred to under the MoU as “adequacy regulations”. These permit the free transfer of personal data collected in the UK to the relevant “adequate” jurisdiction.
On March 12, 2021, France’s highest administrative court (the “Conseil d’État”) issued a summary judgment that rejected a request for the suspension of the partnership between the French Ministry of Health and Doctolib, a leading provider of online medical consultations in Europe, for the management of COVID-19 vaccination appointments.
On March 12, 2021, the European Data Protection Board (“EDPB”) published its Guidelines 01/2021 on Virtual Voice Assistants for consultation (the “Guidelines”). Virtual voice assistants (“VVAs”) understand and execute voice commands or coordinate with other IT systems. These tools are available on most smartphones and other devices and collect significant amounts of personal data, such as through user commands. In addition, VVAs require a terminal device equipped with a microphone and transfer data to remote service. These activities raise compliance issues under both the General Data Protection Regulation (“GDPR”) and the e-Privacy Directive.
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