Position of Spain on the General Data Protection Regulation: flexibility, common sense and self-regulation
As expectation and concerns rise whilst we wait for the final position of the LIBE committee and the European Parliament on the General Data Protection Regulation (the "Regulation"), the report issued
As expectation and concerns rise whilst we wait for the final position of the LIBE committee and the European Parliament on the General Data Protection Regulation (the "Regulation"), the report issued by the Spanish Ministry of Justice on the Regulation (the "Report") and the recent statements of the Spanish Minister of Justice is music to our ears.
A few weeks ago the Spanish Minister of Justice expressed concern that SMEs could be 'suffocated' by the new data protection framework. This concern seems to have inspired some of the amendments suggested in the Report which are designed to make the Regulation more flexible. These include substantive changes to reduce the administrative burdens for organisations with a DPO or for those that have adhered to a certification scheme, and the calculation of fines on profits rather than turnover.
Spain favours a Regulation that relies on self-regulation and accountability, clearly steering away from a restrictive 'one size fits all' approach which establishes an onerous (and expensive to comply with) framework . The underlying objective of these proposals seems to be the protection of the SMEs at the core of the Spanish economy. A summary of the Spanish position is provided below:
- Regulation v Directive: there is agreement that a Regulation is the best instrument to standardise data protection within the EU. This is despite the fact that this will cause complications under Spanish Constitutional law.
- Data protection principles: the Report favours the language of the Data Protection Directive (which uses the expression "adequate, relevant and not excessive") as it allows more flexibility than the language of the Regulation which refers to personal data being "limited to the minimum necessary". In updating personal data, the Report suggests that this should only be required "whenever necessary" and depending upon its expected use as opposed to the general obligation currently set out by the Regulation.
- Information: the requirement to inform individuals about the period during which personal data will be kept is considered excessive and very difficult to comply with. The Report suggests that this should only be required "whenever it is possible".
- Consent: the requirement of express consent is seen as too onerous in practice and "properly informed consent" is favoured, the focus being on whether individuals understand the meaning of their actions. The adoption of sector by sector solutions in this context is not ruled out.
- Right to be forgotten: this right is considered paramount but the point is made that a balance has to be found between "theoretical technological possibilities" and "real limitations". Making an organisation solely responsible for the erasure of personal data which has been disseminated to third parties is regarded as excessive.
- Security incidents: various amendments to the articles that regulate breach notifications are suggested to introduce less stringent requirements to the proposed regime. The suggested amendments remove the duty to notify the controller within 24 hours and also limit the obligation to notify for serious breaches only. Notifications to data subjects are also limited to those that would not have a negative impact on the investigations.
- DPOs: it is proposed that the appointment of DPOs should not be compulsory but should be encouraged by incentives such as the suppression of certain administrative burdens (as referred to below). Organisations without the resources to appoint a DPO may also be encouraged to adopt a "flexible and rigorous" certification policy or scheme. Such certifications would be by sector, revocable and renewable.
- Documentation, impact assessments and prior authorisation: the suggested amendments propose a solution whereby organisations which hold a valid certificate or which have appointed a DPO, would not have to maintain documentation, carry out PIAs or request authorisation to data protection authorities as provided for by Articles 28.2, 33 and 34 of the Regulation respectively.
- International transfers: Spain favours the current system but suggests that this could be made more flexible by only requiring the authorisation of the data protection authority for contractual clauses (which have not been adopted by the Commission or an authority) when the organisation does not have a DPO or a certificate.
- One-stop-shop: this concept is endorsed in general but the Report proposes that where a corporation is established in more than one Member State, the DPA established in the country of residence of an individual complainant should have jurisdiction to deal with the matter. The consistency mechanism would be used to ensure a coherent decision where there were several similar complaints in different countries.
- Sanctions and alternatives: Spain considers that the current system could be improved by providing less stringent alternatives to the imposition of fines. Furthermore, it is proposed that the way in which sanctions are calculated is reviewed on the basis that annual turnover does not equal benefits obtained. This is to avoid the imposition of disproportionate sanctions.
- Technological neutrality: technological neutrality is supported although the Report expresses concerns that such neutrality does not provide for adequate solutions for particular challenges, such as those presented by cloud computing or the transfer of personal data over the Internet.
- Cloud computing: the Report suggests that the Regulation takes this "new reality" into account and suggests the adoption some measures, for example, those aimed at (1) finding a balance between the roles of controllers and processors in order to avoid cloud service providers becoming solely responsible for the processing of personal data; and (2) simplifying the rules on international transfers of personal data; for example, by extending binding corporate rules to the network of sub-processors.
A few weeks ago the Spanish Minister of Justice expressed concern that SMEs could be 'suffocated' by the new data protection framework. This concern seems to have inspired some of the amendments suggested in the Report which are designed to make the Regulation more flexible. These include substantive changes to reduce the administrative burdens for organisations with a DPO or for those that have adhered to a certification scheme, and the calculation of fines on profits rather than turnover.
Spain favours a Regulation that relies on self-regulation and accountability, clearly steering away from a restrictive 'one size fits all' approach which establishes an onerous (and expensive to comply with) framework . The underlying objective of these proposals seems to be the protection of the SMEs at the core of the Spanish economy. A summary of the Spanish position is provided below:
- Regulation v Directive: there is agreement that a Regulation is the best instrument to standardise data protection within the EU. This is despite the fact that this will cause complications under Spanish Constitutional law.
- Data protection principles: the Report favours the language of the Data Protection Directive (which uses the expression "adequate, relevant and not excessive") as it allows more flexibility than the language of the Regulation which refers to personal data being "limited to the minimum necessary". In updating personal data, the Report suggests that this should only be required "whenever necessary" and depending upon its expected use as opposed to the general obligation currently set out by the Regulation.
- Information: the requirement to inform individuals about the period during which personal data will be kept is considered excessive and very difficult to comply with. The Report suggests that this should only be required "whenever it is possible".
- Consent: the requirement of express consent is seen as too onerous in practice and "properly informed consent" is favoured, the focus being on whether individuals understand the meaning of their actions. The adoption of sector by sector solutions in this context is not ruled out.
- Right to be forgotten: this right is considered paramount but the point is made that a balance has to be found between "theoretical technological possibilities" and "real limitations". Making an organisation solely responsible for the erasure of personal data which has been disseminated to third parties is regarded as excessive.
- Security incidents: various amendments to the articles that regulate breach notifications are suggested to introduce less stringent requirements to the proposed regime. The suggested amendments remove the duty to notify the controller within 24 hours and also limit the obligation to notify for serious breaches only. Notifications to data subjects are also limited to those that would not have a negative impact on the investigations.
- DPOs: it is proposed that the appointment of DPOs should not be compulsory but should be encouraged by incentives such as the suppression of certain administrative burdens (as referred to below). Organisations without the resources to appoint a DPO may also be encouraged to adopt a "flexible and rigorous" certification policy or scheme. Such certifications would be by sector, revocable and renewable.
- Documentation, impact assessments and prior authorisation: the suggested amendments propose a solution whereby organisations which hold a valid certificate or which have appointed a DPO, would not have to maintain documentation, carry out PIAs or request authorisation to data protection authorities as provided for by Articles 28.2, 33 and 34 of the Regulation respectively.
- International transfers: Spain favours the current system but suggests that this could be made more flexible by only requiring the authorisation of the data protection authority for contractual clauses (which have not been adopted by the Commission or an authority) when the organisation does not have a DPO or a certificate.
- One-stop-shop: this concept is endorsed in general but the Report proposes that where a corporation is established in more than one Member State, the DPA established in the country of residence of an individual complainant should have jurisdiction to deal with the matter. The consistency mechanism would be used to ensure a coherent decision where there were several similar complaints in different countries.
- Sanctions and alternatives: Spain considers that the current system could be improved by providing less stringent alternatives to the imposition of fines. Furthermore, it is proposed that the way in which sanctions are calculated is reviewed on the basis that annual turnover does not equal benefits obtained. This is to avoid the imposition of disproportionate sanctions.
- Technological neutrality: technological neutrality is supported although the Report expresses concerns that such neutrality does not provide for adequate solutions for particular challenges, such as those presented by cloud computing or the transfer of personal data over the Internet.
- Cloud computing: the Report suggests that the Regulation takes this "new reality" into account and suggests the adoption some measures, for example, those aimed at (1) finding a balance between the roles of controllers and processors in order to avoid cloud service providers becoming solely responsible for the processing of personal data; and (2) simplifying the rules on international transfers of personal data; for example, by extending binding corporate rules to the network of sub-processors.