The UK Government has published a “no deal” note to clarify how data protection law will work in the event that the UK leaves the EU without a deal. The note confirms that separate draft regulations and more detailed guidance will be published in the next few weeks but, in the meantime, it clarifies at a high level a number of key issues for organisations both within the UK and outside but doing business with the UK.
The UK data protection regulator, the Information Commissioner’s Office (ICO), has issued its first enforcement notice under the EU’s new strict data protection law, the General Data Protection Regulation (679/2016/EU) (GDPR). The notice is particularly noteworthy because it has been issued against a company located in Canada, which does not appear to have any presence within the EU.
Not only is it the first extra-territorial notice issued by the ICO under the GDPR, but it is the first action ever taken by the ICO against an entity outside the UK. It is understood that the notice is being appealed. The extraterritorial reach of the GDPR is as yet untested and, without any regulatory guidance as to interpretation, how that appeal plays out may be an early indicator as to the issues that could arise in extra-territorial enforcement under the GDPR.
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We are living in an increasingly inter-connected digital society where the services of many organisations are global in nature, and yet internet activities are still being tackled by national laws and regulations. The online world does not respect physical or geographical boundaries, often giving rise to the question of which law is applicable in the case of online activities. In the data protection and privacy space, the new General Data Protection Regulation (“GDPR“) seeks to tackle this online transnational data and privacy issue through its extra-territorial application.
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