Recent legislative and legal developments in the global digital world.
Wednesday, 23 October, 2019
EU-U.S. Privacy Shield: Third review welcomes progress while identifying steps for improvement
The European Commission publishes its report on the third annual review of the functioning of the EU-U.S. Privacy Shield. The report confirms that the U.S. continues to ensure an adequate level of protection for personal data transferred under the Privacy Shield from the EU to participating companies in the U.S. Being in the third year of the Shield's operation, the review focused on the lessons learnt from its practical implementation and day-to-day functionality. Today there are about 5,000 companies participating in this EU-U.S. data protection framework.
The entry into force of the SCA, expected for mid September, has been delayed
This is the strong customer authentication system (SCA) envisaged in the Payment Services Directive (PSD2) to help combat fraud in e-commerce. Despite its entry into force being scheduled for September 14, 2019, the authorities of companies such as the United Kingdom, Germany, France or Italy have stated that they intend to delay it for a limited period, which could be around 18 months.
Monday, 26 August, 2019
Provisional agreement between France and the United States regarding the new French digital tax
France and the United States have reached a provisional agreement regarding the new French digital tax which was approved in July and is applicable retroactively. Under the terms of this agreement, US companies will pay this tax until the OECD has adopted an international treaty (which is expected to be in the first half of 2020). When this happens, France will pay companies the difference between the French tax and that agreed upon by the OECD.
The P2B Regulation, which will apply to all Member States as from July 12, 2020, was published in the Official Journal of the European Union. The European Commission must evaluate the Regulation by January 13, 2022.
This past week, the French Senate approved a digital tax of 3% on sales of companies that generate worldwide revenue of at least €750 million per year, with €25 million coming from within France. The US government is conducting an inquiry into the move, which it believes could unfairly target certain companies, and may take measures in response.
The EU Regulation on the free flow of non-personal data enters into force
This Regulation provides for: (i) the free flow of non-personal data across Member State borders, (ii) data availability for regulatory control purposes by competent authorities, (iii) facilitating the switching of cloud service providers for professional users, and (iv) cross-border collaboration in cybersecurity matters in the EU.