Right now, the whole of the U.K. appears to be on the same spot looking over a precipice. However, this is not the moment to be blind. As politicians struggle to find a magic formula for a prosperous Brexit, businesses are stepping up their efforts to mitigate the damage of a possible “no-deal Brexit.” The data protection community is no different. The proposed withdrawal agreement would have preserved the status quo in data protection terms, at least until the end of the transition period in December 2020. However, if the U.K. leaves the EU without a deal, the implications for international data flows and privacy compliance generally will be severe. Therefore, British pragmatism demands an urgent and thorough approach to preparing for the eventuality of a no-deal Brexit.
Part 8 of Future-Proofing Privacy: Data Processors’ New Obligations. The Regulation will impose a number of compliance obligations and possible sanctions directly on service providers. This is a significant change as currently service providers do not have any direct obligations to comply with EU data protection law (their obligations derive from their contracts with controllers). Future proof deals being negotiated now. Controllers and processors should carefully document the responsibilities of the parties and specifically take into account the forthcoming changes when deciding on providing consent for subprocessors, pricing, security standards and risk allocation.
On April 19, the European Union’s Article 29 Working Party adopted Explanatory Document WP204 on processor Binding Corporate Rules (BCRs). Processor BCRs provide a new avenue for data controllers to transfer EU personal data to processors (such as cloud service providers) located in third countries not considered to ensure an adequate level of protection under the 1995 EU Data Protection Directive. The Article 29 Working Party, noting the success of controller BCRs and citing the “growing interest of industry in such a tool,” provided initial guidance on processor BCRs in June 2012 through Working Document WP195 (which we previously covered here). WP195 presented a “toolbox” that laid out the criteria for approval of processor BCRs, as well as explanatory notes on the content expected in the processor BCRs. As of January 1, 2013, the EU began accepting applications for approval of processor BCRs.
The Spanish Data Protection Authority (SDPA) has established new procedures that allow data processors (not data controllers) based in Spain to obtain authorizations for transferring data processed on behalf of their customers (the data controllers) to sub-processors based in Third Countries that are not deemed to have an adequate level of protection for personal data. In addition, data processors can enter into Standard Contractual Clauses with their sub-processors. Previously in Spain, data controllers had to enter into Standard Contractual Clauses with each of their data processors’ sub-processors in Third Countries and data controllers had to obtain authorizations from the SDPA for such transfers.