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Data/Cyber/Tech Law; helping you innovate & use data better (EU & international); litigation / advice / strategy

New Belgian Data Protection Authority decision: - Both the controller *and* the processor can be liable for not having a data processing agreement (DPA) in place - If you sign a DPA with "retroactivity clause" (i.e. foreseeing an earlier effective date than the signature date), that retroactivity clause does not have any effect from a #GDPR compliance perspective - the signature date is relevant for determining whether you had a DPA in place covering the processing => Conclusion for both the controller and the processor: infringement of Art. 28(3) GDPR, because they did not actually have a DPA in place at the time of the relevant processing A few key excerpts (machine translation): Para. 27: "the obligation to conclude a contract or to be bound by a binding legal act lies on both the controller (here the first defendant) and the processor (here the second defendant) and not on the controller alone. This is particularly important where, as is the case here, a processor offers its specialist services to a large number of separate controllers. It would not be consistent with the GDPR (or, moreover, with the reality on the ground) to consider that the initiative for concluding the contract (and its proposed content) should come solely from the data controller." Para. 29: "the Litigation Chamber is of the opinion that the retroactivity clause provided for in the contract of [DATE] is not such as to compensate for the absence of a contract at the time of the facts. If such a retroactivity clause were to be accepted, it would de facto make it possible to circumvent the temporal application of the obligation under Article 28.3. of the GDPR, which, as was as developed in points 26 and 27 above, on both the controller and the processor. the processor. However, as explained in point 28 above, the GDPR itself provides for a period of 2 years between its entry into force and its entry into application for progressive compliance by all the entities concerned. [...] The obligation to conclude such a contract [...] also pursues the objective of guaranteeing the protection of the rights and freedoms of the data subjects whose data which will be processed in the context of the relationship which the controller (here the first defendant) and the processor (here the second defendant) choose to create between them are thus protected. This lack of protection - which is required by the GDPR - cannot be covered by a contractual retroactivity clause agreed by the defendants alone, in defiance of the rights of the data subjects - who are not parties to the contract - enshrined in a standard that is moreover of a European level." Para. 30: "the Litigation Chamber concludes that both the first and second defendants [=> the controller *and* the processor] are guilty of a breach of Article 28(3) of the GDPR." Link (decision in French): https://lnkd.in/dw4xzsW7 #dataprotection #privacy

Peter Craddock

Data/Cyber/Tech Law; helping you innovate & use data better (EU & international); litigation / advice / strategy

7mo

Some additional thoughts: it would be interesting to see whether this reasoning re retroactivity is tweaked in cases where negotiations on a new DPA take longer. In the present case, the Litigation Chamber referred to the long implementation period foreseen in the GDPR, which is fine for processing activities of pre-2018. For "newer" ones, that legal provision is irrelevant - yet it happens more often than you would think that two companies start working before an agreement has been formalised. Not a good practice, but it is an actual practice. (The GDPR is clear about the need for binding terms, so in essence the principle remains, but then the excuse of "you've had many years to do this" doesn't work)

Kristina Mandić

Privacy & Data Protection Professional | Aspiring retiree

7mo

I hope the regulator concluded this only for the cases where both parties are passive (e.g. neither one of them suggests to conclude the DPA). Otherwise, how can the processor "force" the controller to sign the DPA if the contoller doesn't want it?! If there's inbalance of power then there can't be equal responsibility.

Louise Thompson

Commercial contracts and data protection law - Trethowans LLP

7mo

Did they impose a fine? If so how much?

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Gabriel Avigdor

Technology | Privacy | Digital Health | Business Lawyer | Medical Devices & Life Sciences | CAR T | CIPP/E

7mo

Very logic, thanks for sharing! Same would apply to SCCs whether you sign them as an annex or standalone to the main DPA. The key thing is to ensure that you do not start the processing activity before the contract is signed, or the data is transferred cross-border.

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Prof. Dr. Jacques Folon

Partner Folon & partners🔒Founder GDPRfolder 🧑💻 Ext. DPO & GDPR adviser📚 Academic Director for DPO trainings🥇 Keynote speaker 💁♂️ Essayist ✍🏻 Weekly columnist Le Soir ⚖️ Vice-président DPOPRO

7mo

Many thanks Peter

John Chaisson

Privacy Leader, Ex Amazon. AI Privacy, Ad Tech Privacy, Co-Chair IAPP Philadelphia Chapter

7mo

Peter Craddock thank you this level of detail

Louise Thompson

Commercial contracts and data protection law - Trethowans LLP

7mo

Interesting thanks Sarah Wheadon

Gbenga Odugbemi

Legal Counsel, Privacy & AI

7mo

I disagree with the Belgian Authority. A DPA is a contract, and pre-GDPR, it’s practise and conventional that contracts are backdated, and retroactive clause that correctly memorialised parties intentions are valid in law — nunc pro tunc. Additionally, there are reasons a DPA — which, again is a contract — can be backdated, eg, if it’s lost, destroyed, wrong version signed by parties, etc. A blanket reasoning that a contract cannot be backdated as this reasoning lacks any root/substance in law — both in practise and even statutorily as the GDPR did not envisage that DPAs cannot be backdated. What the GDPR did was impose a duty to have a DPA in place — which parties clearly have in place. A reasoning that the DPA is ineffectual from a GDPR perspective because it was backdated is totally legally fallacious. The GDPR did not say anything about this, and practise should have filled this void in the stance of that laxity. I hope the decision is appealed, it would be good for the jurisprudence. The fact that it is a DPA doesn’t make it extra special, it’s still a contract, and the law/principles of contract which allows parties to negotiate at “arms-length” allows for backdating. This is the position of the law.

Cristian Klein, PhD

Product Owner for Compliant Kubernetes @ Elastisys | Kubernetes, GDPR, NIS2

7mo

Looking at this as a data processor, this ruling both makes sense and is weird. It makes sense because DPAs should really be part of your terms of service and be in place day 1. This is what we do at Elastisys. It's easy, it avoids misunderstandings and makes you 100% GDPR compliant. Also, from a commercial perspective, a DPA is only a hygien factor and not a motivation for buying your services. Your sales should talk features, not data protection. So get the "dumb stuff" out of the way and put that DPA in your terms of service today! 😁 But the decision is also weird. First, GDPR applies directly the processor. So, DPA or not, you must already secure personal data and process personal data only as instructed by the controller. A DPA is 95% reiterating the GDPR. The remaining 5% is where the real value of a DPA lies: clarify who is the controller and who is the processor, and what data the processor will receive. Second, in some EU Member States, it is perfectly legal to provide a working contract as late as 2 months after the first working day. So, either we agree that "agreements in principle" are okay in high-trust environments or we agree that a contract needs to be in place before getting down to business.

Deepak George, CISSP

Senior Security Engineer (All Views and comments expressed in this forum are my own personal "opinion"). Not part of management hence not best person for Marketing outreach and may not be acknowledged

7mo

Wondering what Belgian Data protection authority seems to achieve if they declare that "retrospective clause" is not valid and still deciding on no fines that could ensure change in behaviour..so why should companies worry..As long as if this a precedent with no fines.. Reprimand with no meaningful action that impact bottom-line is not going to change anything.. now all companies affected can demonstrate this decision by "learned authority" and demand equal treatment just accepting reprimand..

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