The flow of personal data from the EU into the UK can continue after the European Commission confirmed this week (28th June) the formal recognition of the UK’s high data protection standards.
Since the EU referendum Ukie have repeatedly and consistently stressed the importance of securing a data adequacy agreement to ensure the free flow of data between the EU and UK.
This data adequacy decision means that games companies in both the EU and UK can continue to transfer data as they have been able to do so pre-Brexit.
What happened?
After the referendum, there were concerns that this flow of data may be threatened as a result of the UK becoming a third country to the EU.
Over the past few years, we’ve stressed the continued need for EU-UK data transfers. As an inherently digital industry, the ability to collect and use data is important for games companies developing new innovative products and enhancing player experiences.
The UK government had previously confirmed that data from the UK could continue to flow to the EU following Brexit.
However, the EU had to first confirm that the UK’s data protection standards were sufficient to protect EU citizen data and in alignment with its law before that could take place.
At the end of the transition period on 31 December 2020, the EU agreed to temporarily allow data transfers for at another four to sixth months to allow them time to assess whether a data adequacy decision could be made.
Earlier this year, the European Commission published its draft decision which confirmed the UK’s data protection standards were adequate. This final decision this week sets in stone that data transfers can continue.
What does this mean for games businesses?
The good news is that games businesses will not need to take further action in relation to their data flows across borders between the UK and the EU. While this might not seem like much, it’s a big win for the industry.
The continuation of data flows on previous terms and the lack of disruption that causes stands in contrast to other areas of the economy, where the UK’s decision to leave the EU has caused changes in the law and difficulties for businesses.
However, companies will need to keep an eye on things. As with much of the Brexit deal, a review of this data adequacy deal will take place after four years to ensure that the UK and EU’s data protection standards are aligned.
If the UK remains in alignment then, nothing would change. If the UK were to move too far from the principles of the General Data Protection Regulation, this data adequacy decision may be again at risk and threaten added red tape for businesses.
In the meantime though, companies can rest easy in the knowledge that one of the big priorities for the games sector post Brexit has been achieved.
Have any questions about data adequacy or other policy issues? Contact the Ukie policy team here.