Professional Documents
Culture Documents
Contents
1 Summary
2 Content
2.1 Scope
2.2 Single set of rules and one-stop shop
2.3 Responsibility and accountability
2.4 Lawful basis for processing
2.5 Consent
2.6 Data protection officer
2.7 Pseudonymisation
2.8 Data breaches
2.9 Sanctions
2.10 Right of access
2.11 Right to erasure
2.12 Data portability
2.13 Data protection by design and by default
2.14 Records of processing activities
3 Restrictions
4 Discussion and challenges
5 Timeline
6 EU Digital Single Market
7 See also
8 References
9 External links
Summary
GDPR extends the scope of EU data protection law to all foreign companies
processing data of EU residents.[4] It provides for a harmonization of the data
protection regulations throughout the EU, thereby making it easier for non-European
companies to comply with these regulations; however, this comes at the cost of a
strict data protection compliance regime with severe penalties of up to 4% of
worldwide turnover or €20 million, whichever is higher.[5]
The GDPR also brings a new set of "digital rights" for EU citizens in an age of an
increase of the economic value of personal data in the digital economy.
Content
The regulation contains the following key requirements:[6][7]
Scope
The regulation applies if the data controller (an organisation that collects data
from EU residents), or processor (an organisation that processes data on behalf of
a data controller like cloud service providers), or the data subject (person) is
based in the EU. The regulation also applies to organisations based outside the EU
if they collect or process personal data of individuals located inside the EU.
The regulation does not purport to apply to the processing of personal data for
national security activities or law enforcement of the EU; however, industry groups
concerned about facing a potential conflict of laws have questioned whether Article
48[9] of the GDPR could be invoked to seek to prevent a data controller subject to
a third country's laws from complying with a legal order from that country's law
enforcement, judicial, or national security authorities to disclose to such
authorities the personal data of an EU person, regardless of whether the data
resides in or out of the EU. Article 48 states that any judgement of a court or
tribunal and any decision of an administrative authority of a third country
requiring a controller or processor to transfer or disclose personal data may not
be recognised or enforceable in any manner unless based on an international
agreement, like a mutual legal assistance treaty in force between the requesting
third (non-EU) country and the EU or a member state. The data protection reform
package also includes a separate Data Protection Directive for the police and
criminal justice sector[10] that provides rules on personal data exchanges at
national, European, and international levels.
To be able to demonstrate compliance with the GDPR, the data controller should
implement measures, which meet the principles of data protection by design and data
protection by default. Privacy by design and by default (Article 25) require data
protection measures to be designed into the development of business processes for
products and services. Such measures include pseudonymising personal data, by the
controller, as soon as possible (Recital 78).
Data Protection Impact Assessments (Article 35) have to be conducted when specific
risks occur to the rights and freedoms of data subjects. Risk assessment and
mitigation is required and prior approval of the national data protection
authorities (DPAs) is required for high risks. Data protection officers (Articles
37–39) are required to ensure compliance within organisations.
for all public authorities, except for courts acting in their judicial capacity
if the core activities of the controller or the processor are:
processing operations, which, by virtue of their nature, their scope and/or their
purposes, require regular and systematic monitoring of data subjects on a large
scale
processing on a large scale of special categories of data pursuant to Article 9 and
personal data relating to criminal convictions and offences referred to in Article
10[17]
Lawful basis for processing
Data may not be processed unless there is at least one lawful basis to do so:[18]
The data subject has given consent to the processing of personal data for one or
more specific purposes.
Processing is necessary for the performance of a contract to which the data subject
is party or to take steps at the request of the data subject prior to entering into
a contract.
Processing is necessary for compliance with a legal obligation to which the
controller is subject.
Processing is necessary to protect the vital interests of the data subject or of
another natural person.
Processing is necessary for the performance of a task carried out in the public
interest or in the exercise of official authority vested in the controller.
Processing is necessary for the purposes of the legitimate interests pursued by the
controller or by a third party unless such interests are overridden by the
interests or fundamental rights and freedoms of the data subject, which require
protection of personal data, in particular if the data subject is a child.
Consent
If consent is used as the lawful basis for processing, consent must be explicit for
data collected and the purposes data is used for (Article 7; defined in Article 4).
Consent for children[19] must be given by the child’s parent or custodian, and
verifiable (Article 8). Data controllers must be able to prove "consent" (opt-in)
and consent may be withdrawn.[20]
The area of GDPR consent has a number of implications for businesses who record
calls as a matter of practice. The typical “calls are recorded for training and
security purposes” warnings will no longer be sufficient to gain assumed consent to
record calls. Additionally, when recording has commenced, should the caller
withdraw their consent then the agent receiving the call must somehow be able to
stop a previously started recording and ensure the recording does not get stored.
[21]
The appointment of a DPO in a large organization will be a challenge for the board
as well as for the individual concerned.[citation needed] There are myriad
governance and human factor issues that organisations and companies will need to
address given the scope and nature of the appointment. In addition, the DPO must
have a support team and will also be responsible for continuing professional
development to be independent of the organization that employs them, effectively as
a "mini-regulator."
More details on the function and the role of data protection officer were given on
13 December 2016 (revised 5 April 2017) in a guideline document.[22]
Pseudonymisation
The GDPR refers to pseudonymisation as a process that is required (as an
alternative to the other option of complete data anonymization)[23] to transform
personal data in such a way that the resulting data cannot be attributed to a
specific data subject without the use of additional information. An example is
encryption, which renders the original data unintelligible and the process cannot
be reversed without access to the correct decryption key. The GDPR requires for the
additional information (such as the decryption key) to be kept separately from the
pseudonymised data.
GDPR encourages the use of pseudonymisation to "reduce risks to the data subjects"
(Recital 28).[24]
Data breaches
Under the GDPR, the data controller is under a legal obligation to notify the
supervisory authority without undue delay unless the breach is unlikely to result
in a risk to the rights and freedoms of the individuals. There is a maximum of 72
hours after becoming aware of the data breach to make the report (Article 33).
Individuals have to be notified if adverse impact is determined (Article 34). In
addition, the data processor will have to notify the controller without undue delay
after becoming aware of a personal data breach (Article 33).
However, the notice to data subjects is not required if the data controller has
implemented appropriate technical and organisational protection measures that
render the personal data unintelligible to any person who is not authorised to
access it, such as encryption (Article 34).
Sanctions
The following sanctions can be imposed:
Right to erasure
A right to be forgotten was replaced by a more limited right of erasure in the
version of the GDPR that was adopted by the European Parliament in March 2014.[27]
[28] Article 17 provides that the data subject has the right to request erasure of
personal data related to them on any one of a number of grounds, including
noncompliance with Article 6.1 (lawfulness) that includes a case (f) if the
legitimate interests of the controller is overridden by the interests or
fundamental rights and freedoms of the data subject, which require protection of
personal data (see also Google Spain SL, Google Inc. v Agencia Española de
Protección de Datos, Mario Costeja González).
Data portability
Further information: Data portability
A person is to be able to transfer personal data from one electronic processing
system to and into another, without being prevented from doing so by the data
controller. Data that has been sufficiently anonymised is excluded, but data that
has been only de-identified but remains possible to link to the individual in
question, such as by providing the relevant identifier, is not.[29] Both data being
'provided' by the data subject and data being 'observed', such as about behaviour,
are included. In addition, the data must be provided by the controller in a
structured and commonly used standard electronic format. The right to data
portability is provided by Article 20 of the GDPR.[7] Legal experts see in the
final version of this measure a "new right" created that "reaches beyond the scope
of data portability between two controllers as stipulated in [Article 20]".[30]
A report[31] by the European Union Agency for Network and Information Security
elaborates on what needs to be done to achieve privacy and data protection by
default. It specifies that encryption and decryption operations must be carried out
locally, not by remote service, because both keys and data must remain in the power
of the data owner if any privacy is to be achieved. The report specifies that
outsourced data storage on remote clouds is practical and relatively safe if only
the data owner, not the cloud service, holds the decryption keys.
Restrictions
The following cases are not covered by the regulation:[18]
The requirement to have a data protection officer (DPO) is new for many EU
countries and is criticised[by whom?] for its administrative burden.
The GDPR was developed with a focus on social networks and cloud providers but did
not consider enough requirements for handling employee data.[39][not in citation
given]
Data portability is not seen as a key aspect for data protection but more a
functional requirement for social networks and cloud providers although data
portability creates transparency to evaluate privacy concerns of controllers.
[citation needed]
Although data minimisation is a requirement, with pseudonymisation being one of the
possible means, the regulation provide no guidance on how or what constitutes an
effective data de-identification scheme, with a grey area on what would be
considered as inadequate pseudonymisation subject to Section 5 enforcement actions.
[40][41][42]
The protection against automated decisions in Article 22, brought forward from the
Data Protection Directive's Article 15, has been claimed to provide protection
against growing numbers of algorithmic decisions online and offline, including
potentially a right to explanation. Whether the old provisions do provide any
meaningful protection is a subject of ongoing debate.[16]
Language and staffing challenges for the national data protection authorities
(DPAs), as EU citizens no longer have a single DPA to contact for their concerns
but have to deal with the DPA chosen by the company involved.
Personal data cannot be transferred to countries outside the European Union unless
they guarantee the same level of data protection.[43]
There is concern regarding the implementation of GDPR in blockchain systems, as the
transparent and fixed record of blockchain transactions contradicts the very nature
of GDPR.[44]
The biggest challenges might be in the implementation of the GDPR:
The implementation of the GDPR will require comprehensive changes to business
practices for companies that had not implemented a comparable level of privacy
before the regulation entered into force, especially non-European companies
handling EU personal data.[citation needed]
There is already a lack of privacy experts and knowledge and so new requirements
might worsen the situation. Therefore, education in data protection and privacy
legislation, particularly to keep in compliance with new rules as they arise, will
be a critical factor for the success of the GDPR.[45] "Privacy by Design" and
related topics were known to specialists only before GDPR, and were manly discussed
in communities at law schools and in cryptography research. Recent university
offerings just began to spread knowledge about designing for privacy from the
legal, technological and managerial perspective, for example Karlstad university's
free and open on-line course at master level.[46]
The European Commission and DPAs must provide sufficient resources and power to
enforce the implementation.
A unique level of data protection has to be agreed upon by all European DPAs, as a
different interpretation of the regulation might still lead to different levels of
privacy.[citation needed]
Europe's international trade policy is not yet in line with the GDPR.[47]
Timeline
25 January 2012: The proposal[12] for GDPR was released.
21 October 2013: The European Parliament Committee on Civil Liberties, Justice and
Home Affairs (LIBE) had its orientation vote.
15 December 2015: Negotiations between the European Parliament, Council and
Commission (Formal Trilogue meeting) resulted in a joint proposal.
17 December 2015: The European Parliament's LIBE Committee voted for the
negotiations between the three parties.
8 April 2016: Adoption by the Council of the European Union.[48] The only member
state voting against was Austria, which argued that the level of data protection in
some respects falls short compared to the 1995 directive.[49][50]
14 April 2016: Adoption by the European Parliament.[51]
24 May 2016: The regulation entered into force, 20 days after its publication in
the Official Journal of the European Union.[26]
25 May 2018: Its provisions will be directly applicable in all member states, two
years after the regulations enter into force.[26]
EU Digital Single Market
The EU digital single market and the facilitation of public services across
borders.
The EU Digital Single Market strategy aims to open up digital opportunities for
people and business and enhance Europe's position as a world leader in the digital
economy.[52]
As part of the strategy, the GDPR and the NIS Directive will all apply from 25 May
2018. The proposed ePrivacy Regulation is also planned to be applicable from 25 May
2018. The eIDAS Regulation is also part of the strategy.