Read The Times Australia

Daily Bulletin

Data privacy: stricter European rules will have repercussions in Australia as global divisions grow

  • Written by: Normann Witzleb, Associate Professor in Law, Monash University
Data privacy: stricter European rules will have repercussions in Australia as global divisions grow

A big year for privacy just got bigger. On July 16, Europe’s top court ruled on the legality of two mechanisms for cross-border transfers of personal data.

The Court of Justice of the European Union (CJEU) struck down the “EU-US Privacy Shield”, an intergovernmental agreement on which thousands of US companies based their data processing with EU trading partners and consumers. At the same time, the CJEU generally upheld so-called “standard contractual clauses” (SCC) for data exports but imposed new requirements on their use.

The decision has an immediate impact on data flows between the USA and the EU. But it will also create new challenges for Australian companies that engage with Europe.

Read more: Tough new EU privacy regulations could lead to better protections in Australia

The global reach of European privacy laws

In 2018, the EU brought into force the General Data Protection Regulation (GDPR), one of the world’s strongest privacy protection frameworks. This latest decision provides further evidence that the GDPR has impact far beyond the EU. It allows data about European citizens to be exported outside the bloc only if an adequate level of data protection is guaranteed.

Adequacy can be demonstrated at country level, and some major trading partners of the EU (such as Japan, Canada and New Zealand) have been certified by the EU as having a comparable level of privacy protection. Until a fortnight ago, US companies could likewise rely on an adequacy decision for the EU-US Privacy Shield. The Privacy Shield allowed companies to self-certify their data practices against a set of minimum criteria and enhanced US regulatory oversight. The Court has now held that this is not enough.

What does this mean for Australia?

Australian companies and consumers need to be mindful of the new CJEU decision. Data exports are very common, particularly where companies operate multi-nationally, outsource some of their data processing or store data on overseas cloud servers.

Australia was not a party to the EU-US Privacy Shield. It also does not have EU adequacy status. This is because our Privacy Act does not apply to small businesses, employee data, and political parties, amongst others. An EU entity that seeks to export personal data to Australia therefore needs to use other safeguards to ensure that EU personal data remains protected.

This is commonly done in the form of standard contractual clauses, by which the sender and recipient of data agree that their data processing meets GDPR standards. The CJEU has now clarified that companies and regulators must verify in each case that the clauses stand up in light of the recipient country’s data laws.

Governmental surveillance programs and access to effective legal remedies are a particular concern. Privacy professionals around the world now have to work out what this new requirement means.

Read more: Here's what a privacy policy that's easy to understand could look like

Deepening global divisions and the trend to data localisation

To comply with the ruling, companies need to engage in a more detailed risk analysis than before. In some cases, data may no longer be transferred. This is likely to contribute to an international trend to house critical data locally. A recent example of this trend is the COVIDSafe app: the data it collects must remain in Australia.

The CJEU decision comes at a time of intense public debate of privacy in Australia and many other countries. The COVID-19 pandemic has turbo-charged the digitalisation of many aspects of daily life. Every digital transaction leaves traces in the form of personal information, which could be a target for data mining and surveillance by corporate and state actors.

It would be sensible to adopt internationally harmonised data protection standards to regulate global data streams. But the world appears currently headed in the opposite direction.

Despite both the EU and US sides emphasising the need for cooperation after the CJEU ruling, the major trading powers and blocs are increasingly pitted against each other.

Apart from the long-standing EU-US division over privacy, China, India and Russia have also begun to assert their own distinct data processing models. These powers generally give their citizens fewer privacy rights than the EU. They also make increasing use of data localisation requirements, which prohibit or impede data export, to enforce their own data protection protocols. The intensifying conflict between the US and China, most recently erupting over the new security laws for Hong Kong, also marks data governance and cybersecurity as significant battlegrounds.

Australia’s new challenges in data protection

Australia’s data regulation tends to be pragmatic and business-friendly. It steers a middle course between the conflicting privacy approaches of the US and the EU. However, in a world retreating from globalised regulation, it is becoming increasingly difficult not to take sides.

Privacy is looming larger than ever in public consciousness, and Australia’s Privacy Act is due for an overhaul. More than ever, Australia needs to determine its own course in safeguarding personal information against potential overreach by corporations and governments.

Authors: Normann Witzleb, Associate Professor in Law, Monash University

Read more https://theconversation.com/data-privacy-stricter-european-rules-will-have-repercussions-in-australia-as-global-divisions-grow-142980

Business News

The Growing Demand for Durable Plastic Packaging Supplies Across Australia

Why Do Australian Businesses Need Reliable Plastic Packaging Supplies? Businesses need packaging that can withstand everyday handling, storage, and distribution without creating avoidable delays. Pla...

Daily Bulletin - avatar Daily Bulletin

Office Cleaning Melbourne: Choosing the Right Scope for Your Office

A well-planned office cleaning Melbourne arrangement starts with a clear understanding of the premises and the people who use it. An office may include private work areas, shared desks, reception, mee...

Daily Bulletin - avatar Daily Bulletin

How Businesses Can Prepare for Unexpected Power Outages

Power failures can occur quickly. The supply may be interrupted by bad weather, issues with the electricity network, damaged equipment or local construction work. This can be just a hassle for a fam...

Daily Bulletin - avatar Daily Bulletin

How Chatswood Tutoring Can Fit Into a Student’s Weekly Routine

Create a Predictable Weekly Structure A consistent weekly routine can make study easier to manage when students are balancing several subjects. Chatswood tutoring can provide a fixed learning point a...

Daily Bulletin - avatar Daily Bulletin

The Rise of Digital Marketplaces in the Australian Trade Sector

For decades, the Australian trade and construction sector operated almost entirely on word-of-mouth recommendations and local community networks. Small business owners typically relied on local newspa...

Daily Bulletin - avatar Daily Bulletin

How Immigration Lawyers Can Help

Introduction Visa decisions can shape employment, family life, study plans, travel, and future residence. A small omission can lead to delay, added expense, or refusal. Immigration lawyers assess l...

Daily Bulletin - avatar Daily Bulletin

How Industrial Drying Equipment Supports Efficient Processing

Many industrial processes require moisture to be removed from compressed air, products or process materials before they move to the next stage. Excess moisture can affect equipment performance, produc...

Daily Bulletin - avatar Daily Bulletin

Practical Ways a Whiteboard Can Improve Workplace Communication

Effective communication helps teams stay organised, share ideas and keep track of important information. While digital tools are now common in many workplaces, a whiteboard continues to provide a simp...

Daily Bulletin - avatar Daily Bulletin

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

What Australian Entrepreneurs Should Know About Streamlining Their Financial Processes

Running a small business in Australia demands much more than just delivering a great product or serv...

Supporting Joint Health in Young and Growing Horses

Anyone who has raised a foal through to a rising three-year-old knows how deceptively fast the gro...

Why Is My Switchboard Buzzing? What a Humming Breaker Is Telling You

Most people never hear their switchboard. It sits quietly in a cupboard, a hallway or a meter box ou...

Solar Panels Geelong: Key Factors to Consider Before Installation

Solar power can help households and businesses generate electricity on site, but the value of a syst...

How Rats and Mice Get Into Homes Through Gaps Most People Miss

Rats and mice do not need an open door to get inside a home. They can squeeze through small openings...

Why a Safety Certified I/O Module Matters in Machine Design

Understanding Safety-Related I/O A safety certified I/O module is designed for use within an arch...

How to Compare Ceiling Fans online before Buying

Comparing ceiling fans online before making a purchase helps you understand how each model will su...

How Does a Portable Power Station for Carvan Adventures Support Smarter Camping?

Why Does Off-Grid Camping Need a Reliable Portable Power Station for Carvan Travel?  People often...

How Ecommerce Order Retail Fulfillment Services Improve Order Accuracy?

Why Order Accuracy Matters in Ecommerce Order Retail Fulfillment Services?  Order accuracy is one...