EU ready to terminate UK data adequacy decision with immediate effect

The UK has announced that it intends to introduce “common-sense data laws” and to bring an “end to box-ticking” with a new more flexible approach to data adequacy. A European Commission spokesperson told journalists on Thursday (26 August) that it will be ready to suspend or terminate the agreement if there are “problematic developments.” 

Asked about the UK proposal, which is more of statement of intent, the European Commission said: “We have seen the announcement and as you know we do not comment on announcements, we do however monitor very closely any developments related to the UK’s data protection rules. 

“When adopting the UK adequacy decisions, the Commission was fully aware of the risk of possible further divergence of the UK system from the EU system. This is why in case of problematic developments that negatively affect the level of protection the EU decision can be suspended, terminated or amended at any time by the Commission. This can be done immediately in case of justified urgency. So we will continue to ensure that Europeans' data will be protected by strong safeguards when crossing the channel.”

In June the EU decided that the UK’s current rules, which are currently largely the same as those in the EU General Data Protection Regulation (GDPR) and Law Enforcement Directive (LED), allow the continued flow of personal data from the EU and EEA to the UK. 

At the time, the UK minister responsible, Oliver Dowden, presented the EU decision as an important one for UK businesses, saying: “After more than a year of constructive talks it is right the European Union has formally recognized the UK’s high data protection standards.

“This will be welcome news to businesses, support continued co-operation between the UK and the EU and help law enforcement authorities keep people safe.”

TechUK CEO Julian David said: “Securing an EU-UK adequacy decision has been a top priority for techUK and the wider tech industry since the day after the 2016 referendum. The decision...is of vital importance to UK-EU trade as the free flow of data is essential to all business sectors.”

TechUK's Director of Markets Matt Evans welcomed the announcement, but underlined that new routes must be trusted and have high privacy standards to maintain access to existing data flows, such as from the EU, as well as opening up global opportunities.

Like the UK proposal to have a UK as well as a CE marking on goods, the additional regulations that diverge from the EU’s could represent a non-tariff barrier, rather than a new opportunity. The UK will have to ensure that it maintains the EU’s standards, while the UK still hopes that through other forums, such as the G7, it can maintain a foothold on influencing global rules. 

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