Understanding The Evolving GDPR Rules On International Data Transfers

According to an article by attorneys at Ogletree Deakins, organizations engaged in international data transfers face considerable risks due to evolving regulations. The invalidation of the Privacy Shield in 2020 and the introduction of new Standard Contractual Clauses (SCCs) in 2021 have forced businesses to adapt, as non-compliance could lead to financial penalties, operational disruptions, and reputational damage.

European and UK regulators are increasingly stringent, particularly regarding transfers of personal data outside the EU. Organizations must ensure that data transferred internationally is protected to the same standards as within the EU, including through mechanisms like SCCs, the EU-US Data Privacy Framework (DPF), or similar GDPR-compliant agreements.

The GDPR allows regulators to impose fines of up to €20 million or 4% of global turnover for non-compliance, especially in cases involving international data transfers. Numerous organizations have faced substantial fines, and regulators remain vigilant in monitoring compliance. Further complications arise from potential challenges to the DPF, and organizations may need to pivot quickly to alternative mechanisms like SCCs to mitigate risks.

Organizations should proactively evaluate international data transfer mechanisms, conduct Transfer Impact Assessments (TIAs), and regularly reassess compliance to avoid costly regulatory actions. Failure to do so can lead to severe penalties, particularly with the GDPR’s extraterritorial reach. 

As regulatory scrutiny intensifies, businesses must remain agile in safeguarding personal data and staying current with legal requirements to manage the risks associated with international data transfers.