On 4 June 2021, the European Commission adopted two sets of standard contractual clauses, one for use between controllers and processors and one for the transfer of personal data to third countries. They reflect new requirements under the General Data Protection Regulation (GDPR) and take into account the Schrems II judgement of the Court of Justice, ensuring a high level of data protection for citizens. These new tools will offer more legal predictability to European businesses and help, in particular, SMEs to ensure compliance with requirements for safe data transfers, while allowing data to move freely across borders, without legal barriers.
The new standard contractual clauses take into account the joint opinion of the European Data Protection Board and the European Data Protection Supervisor, feedback from stakeholders during a broad public consultation and the opinion of Member States' representatives.
Vice-President for Values and Transparency, Vera Jourová said: “In Europe, we want to remain open and allow data to flow, provided that the protection flows with it. The modernised Standard Contractual Clauses will help to achieve this objective: they offer businesses a useful tool to ensure they comply with data protection laws, both for their activities within the EU and for international transfers. This is a needed solution in the interconnected digital world where transferring data takes a click or two.”
Main Innovations
The standard contractual clauses published today reflect new requirements under the General Data Protection Regulation and address the realities faced by modern business. Thanks to their standardisation and pre-approval, the SCCs provide companies with an easy-to-implement template. Companies know that when they use this template they meet data protection requirements.
Main innovations of the new standard contractual clauses:
Update in line with the General Data Protection Regulation (GDPR);
One single entry-point covering a broad range of transfer scenarios, instead of separate sets of clauses;
More flexibility for complex processing chains, through a ‘modular approach' and by offering the possibility for more than two parties to join and use the clauses;
Practical toolbox to comply with the Schrems II judgment; i.e. an overview of the different steps companies have to take to comply with the Schrems II judgment as well as examples of possible ‘supplementary measures', such as encryption, that companies may take if necessary
The GDPR, which entered into force on 25 May 2018, is at the heart of the EU framework guaranteeing the fundamental right to data protection, as enshrined in the Charter of Fundamental Rights of the European Union (Article 8) and in the Treaties (Article 16 of the Treaty on the Functioning of the European Union, ‘TFEU’). ECOPNET (European Cooperation and Partnership Network) would like to emphasize that GDPR is an essential component of the human-centric approach to technology and a compass for the use of technology in the twin green and the digital transitions that characterises EU policy-making.
For controllers and processors that are currently using previous sets of standard contractual clauses, a transition period of 18 months is provided.
These standard contractual clauses are adopted at a moment where a number of regional organisations and third countries are developing or have issued their own standard contractual clauses on the basis of converging principles. The Commission will intensify its cooperation with these international partners to further facilitate data transfers between different regions of the world.
Background
The General Data Protection Regulation (GDPR) entered into force on 24 May 2016 and became applicable on 25 May 2018. The standard contractual clauses are standardised and pre-approved model data protection clauses that can be incorporated into contractual arrangements on a voluntary basis, providing an easy-to-implement tool to comply with data protection requirements.
The Commission can adopt standard contractual clauses for the relationship between controllers and processors, as a tool to help to demonstrate compliance with the GDPR. In addition, the Commission can adopt standard contractual clauses providing data protection safeguards for data to be transferred internationally.
Source: European Commission Press Corner
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