Unless there is a political earthquake (some would say a miracle) Brexit will happen on 29 March 2019. Upon Brexit the UK will cease to be an EU Member State and become a so-called ‘third country’. As a result, UK-based organisations, which in the context of transfers of personal data to countries outside the EU have always been exporters, will become importers of data originating from the EU. This is a serious concern because transfers of personal data from the EU to third countries are severely restricted. So a key UK Government objective from day one has been to ensure that the UK is regarded as an adequate jurisdiction, which would allow unconstrained transfers of personal data from the EU. But will it be?
The Department for Digital, Culture, Media and Sport (‘DDCMS’) has today released guidance on “Data protection if there’s no Brexit deal”, which is part of its preparations for if there is a “no deal” scenario when the Article 50 negotiating period comes to an end on 29 March 2019. The UK will become a “third country” on its exit from the European Union, which means that unhindered cross-border transfers of data will no longer automatically be able to take place between the UK and the EU. The guidance confirms that, given the “unprecedented alignment” between the UK and EU data protection regimes, the UK would continue to allow transfers of data from the UK to the EU at the point of exit. However, the Commission has made it clear that they would not make a decision on adequacy until the UK is a third country (that is, after 29 March 2018), and its procedure for reaching a decision typically lasts several months.
To date, the main legacy of the Brexit referendum of 2016 appears to be a country split in half: some badly wish the UK would continue to be a member of the EU and some are equally keen on making a move. Yet, there seems to be at least one thing on which Remainers and Leavers will agree: nobody knows exactly what is going to happen. The same is true of the effect of Brexit on UK data protection. However, as Brexit day approaches, it is becoming imperative for those with responsibility for data protection compliance to make some crucial strategic decisions. To help with that process, here are some pointers about what we know and what we don’t know.
On 12 July 2016, the European Commission issued its much awaited “adequacy decision” concerning the Privacy Shield framework for the transfer of personal data from the EU to the U.S. This adequacy decision is based on the latest version of the Privacy Shield, which was further negotiated and revised following the Article 29 Working Party’s April 2016 concerns with the terms of the original Privacy Shield framework. Many of our clients have questions about Privacy Shield—what it is, when it will be available for use, and how it differs from other data transfer mechanisms, among others. We have prepared blog post to answer these questions about the updated version of Privacy Shield and its implications for companies engaging in trans-Atlantic data flows.