Intra-Group Data Transfer Strategies:
Establishing compliance frameworks for internal data sharing.
Data Protection in Corporate Groups – Managing Internal and Cross-Border Data Transfers
The transfer of personal data within a corporate group presents unique challenges under data protection law. Many legal frameworks do not grant a "group privilege," meaning that companies within the same corporate group are treated as independent data controllers. As such, data transfers within the group must comply with the same legal standards as transfers to external parties.
Understanding and adhering to these requirements is essential to ensure compliance and avoid regulatory penalties. At DSN GROUP, we provide expert guidance to help you navigate the complexities of intra-group and cross-border data transfers.
Intra-Group Data Transfers in the EU
Data transfers between entities within the EU are permissible under the GDPR if:
- They are necessary for the performance of a contract with the data subject.
- The data subject has provided explicit consent for the transfer.
- The legitimate interests of the company outweigh the data subject’s rights, provided that appropriate safeguards are in place.
"Small Group Privilege"
The GDPR introduces a partial facilitation for intra-group transfers under Recital 48, which allows internal administrative purposes to qualify as a legitimate interest. This is often referred to as a "small group privilege." However, it is still necessary to document the rationale and ensure that the interests of the data subjects are adequately protected.
Shared Services
The use of shared databases or services, such as HR or customer management systems, requires strict compliance with GDPR requirements for data sharing or commissioned processing. Proper data protection agreements, robust technical and organizational measures (TOMs), and compliance documentation are essential.
Cross-Border Data Transfers to Third Countries
Transferring personal data to non-EU countries (third countries) is subject to stricter requirements. The GDPR mandates that an adequate level of data protection must be ensured through one of the following mechanisms:
1. Adequacy Decisions
The European Commission recognizes certain countries as providing an adequate level of data protection. As of now, these countries include:
Andorra, Argentina, Canada, Faroe Islands, Guernsey, Israel, Isle of Man, Japan, Jersey, New Zealand, Republic of Korea, Switzerland, Uruguay, and the United Kingdom.
The scope of adequacy decisions varies by country, so it’s essential to confirm their applicability to specific data processing activities.
2. Standard Contractual Clauses (SCCs)
For countries without an adequacy decision, SCCs must be used. However, following the ECJ ruling in Case C-311/18 (Schrems II), additional Transfer Impact Assessments (TIAs) are required to evaluate whether the data recipient can ensure GDPR-equivalent protection.
3. Binding Corporate Rules (BCRs)
BCRs offer a robust alternative for legitimizing intra-group data transfers. These must be pre-approved by the relevant supervisory authority and implemented across all entities within the group.
4. Article 49 Derogations
In the absence of adequacy decisions, SCCs, or BCRs, Article 49 provides limited exceptions for data transfers, such as explicit consent from the data subject or the necessity for contract performance.
Our Expertise in Managing Data Transfers
At DSN GROUP, we assist corporate groups with:
Drafting and Reviewing Agreements:
Preparing data transfer agreements, including SCCs and BCRs.
Conducting Transfer Impact Assessments (TIAs):
Evaluating third-country legal frameworks and mitigating risks.
Implementing Technical and Organizational Measures (TOMs):
Enhancing data security for cross-border transfers.
Training and Support:
Equipping your team to handle data transfers in compliance with privacy laws.
Key Risks of Non-Compliance
Failing to comply with privacy requirements for intra-group or cross-border data transfers can result in:
- Regulatory Fines: Fines for data protection breaches can reach up to €20 million or 4% of global annual turnover.
- Operational Disruption: Invalid data transfers may require reconfiguration of business processes.
- Reputational Damage: Public scrutiny and loss of customer trust due to non-compliance.
Why Choose DSN GROUP?
Our interdisciplinary team of legal experts and data protection specialists ensures that your data transfer practices are fully compliant and aligned with your operational goals. Whether you operate within the EU or across multiple jurisdictions, we provide tailored solutions to manage data protection risks effectively.
Secure Your Data Transfers Today
Data transfers within corporate groups require meticulous planning and compliance with complex legal requirements. Partner with DSN GROUP to ensure your intra-group and cross-border data transfers are seamless, compliant, and secure.
Contact Us
You want to know more? We happily answer all your questions, don't hesitate to contact us!
Cihan Parlar, LL.M. (Tilburg), Lawyer
Managing Director
Email: cparlar@re-move-this.first-privacy.com
Phone: +31 20 211 7116
FIRST PRIVACY B.V., Amsterdam
Peter Suhren, Lawyer
Managing Director
Email: psuhren@re-move-this.first-privacy.com
Phone: +49 421 69 66 32-822
FIRST PRIVACY GmbH, Bremen
If your inquiry concerns an organization based in Germany, these contacts will help you
Oliver Stutz, Lawyer
Managing Director
Email: ostutz@re-move-this.datenschutz-nord.de
Phone: +49 421 69 66 32-314
datenschutz nord GmbH, Bremen
Dr. iur.
Christian Borchers, Lawyer
Managing Director
Email: office@re-move-this.datenschutz-sued.de
Phone: +49 931 30 49 76-0
datenschutz süd GmbH, Würzburg
