Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

No-deal Brexit data - should firms worry?

No-deal Brexit data - should firms worry?

In a no-deal Brexit, the UK will need to prove to the EU that its data protection is up to scratch.

"Take steps now to keep receiving data legally from the EU."

That's the message for businesses in a full page government advert in the Financial Times and elsewhere.

It goes on to warn that after 31 October "you may need to update your contracts."

But just how worried should companies big and small be about handling data in the event of a no deal Brexit?

The advert tells readers to follow the step-by-step guide at gov.uk/brexit.

But when you arrive there, finding your way to the advice about data is not straightforward.

I found that I had to pretend to be a business and answer a whole series of questions before I was presented with the information.

So here is the key issue. Right now data can flow freely across the EU as long as companies conform to its tough new General Data Protection Regulation (GDPR).

And as the GDPR is being incorporated wholesale into UK law, there should be no real change after Brexit - as long as we leave with a deal.

But if there is no deal, we will be treated as an external country, needing what is called an adequacy ruling showing our data protection standards are up to scratch - and the European Commission has indicated that this would not happen in a hurry.

So what do businesses need to do? Well, sending data to the EU will apparently be no problem because the UK government has decided it is happy with European standards.

But if you receive data - perhaps a lists of names and addresses of customers - from a company in the EU or the wider European Economic Area then you will need to take action.

The advice is that you should "review your contracts and, where absent, include Standard Contractual Clauses (SCC) or other Alternative Transfer Mechanisms (ATM) to ensure that you can continue to legally receive personal data from the EU/EEA."

Err - right. I can hear dozens of small business owners gulping at that.

But the gov.uk site then sends them over to the Information Commissioner's Office to find a handy interactive tool which will allow them to work out just how to craft one of these clever contracts.

Don't worry, the government site says, "for most organisations, especially SMEs, taking the required action isn't highly costly and doesn't always require specialist advice."

But don't think you can just ignore the problem."If you fail to act, your organisation may lose access to personal data it needs to operate."

Big companies are likely to have addressed this issue. One payments firm told me it had opened an office in Ireland, and was preparing to tell EU customers that their business would now be handled from there.


'Insurmountable bureaucracy'


But how prepared are small businesses?

Ben Thompson, co-owner of a cycle store in Fort William in Scotland, has visited the gov.uk/brexit site.

When he filled in the questionnaire he found he faced 21 Brexit-related issues, among them data transfers.

"We organise cycle tours, and may for instance be getting customer data from a German travel agency," he explains.

He now worries that he may need to sort out new contracts with all of his European customers. "My heart sank when I saw this - it's an insurmountable pile of bureaucracy for a small business."


Legal angle


It is all good business for lawyers. But Alex Brown, head of the technology practice at Simmons and Simmons, urges caution about just how serious the data transfer issue is: "If I was a business exporting this would be on my list to fix - but it wouldn't be near the top."

He doubts whether data regulators will be rushing to punish small businesses which fail to get the right contracts in place straight away.

But it is just one more worry for businesses grappling with Brexit uncertainty.

Make UK, the manufacturers' organisation, says the whole area is confusing for thousands of its members trading with the EU and is calling on the government to give clear guidance.

A DCMS spokesperson said it was in everyone's interests that the exchange of personal data between EU member states and the UK continued, and the government had set out ways in which businesses could comply with EU data protection laws.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
×