New standard contractual clauses for data transfers between EU and non-EU countries and how it affects your business

As of September 27th, 2021, companies and organisations relying on Standard Contractual Clauses (SCCs) to transfers personal data outside the EU/EAA must use the new set of Standard Contractual Clauses (2021 SCCs) for all new contracts.

Background

All companies that transfer personal data outside the EU/EAA must ensure that the level of protection of natural persons guaranteed by the General Data Protection Regulation (GDPR) is not undermined. This means that unless a country outside the EU/EAA is subject to an adequacy decision by the European Commission, personal data exporters and importers need to apply a transfer mechanism to lawfully transfer personal outside the EU/EEA.

Following the Schrems II judgement, which invalidated the EU-US Privacy Shield, many companies have relied on SCCs for their personal data transfers. To account for the GDPR and the Schrems II decision, the European Commission issued a new set of Standard Contractual Clauses on June 4th, 2021 stating that all new contracts relying on SCCs must use the 2021 SCCs from September 27th, 2021 onward.

If you want to learn more about Schrems II, please read our summary and breakdown of the judgement here.

What is new?

The 2021 SCCs introduces a modular approach meaning that some provisions are general and applicable to all transfer and others are specific to the applicable module. There are four available modules in the 2021 SCCs covering four different types of transfers: module 1 (controller to controller); module 2, (controller to processor); module 3 (processor to processor); module 4 (processor to controller). In addition to determining the correct module, choices and customisation are necessary for the text contained in the modules.

The 2021 SCCs are designed to address requirements provided in the Schrems II judgement and have added several provisions that regulate the obligations of the contracting parties where public authorities may access the transferred personal data. The 2021 SCCs also includes provisions with regard to assessing the local law of third countries where personal data will be processed and how local government authorities may access personal data in the importing country.

The 2021 SCCs also introduces a docking clause which provides a mechanism enabling multi party agreements. The docking clause is optional to use.

What does this mean?

It is important to remember that the practical implementation of the 2021 SCCs goes beyond contractually implementing the 2021 SCCs.

The contracting parties are required to assess and analyse all relevant aspects of the transfer, including but not limited to the legislation of third countries where personal data will be processed and to apply supplement safeguards (e.g. technical and organisational measures) required to ensure that the protection of natural persons is not undermined. Implementing the 2021 SCCs will require substantial efforts from the contracting parties.

Contracts entered before September 27th, 2021, may rely on the old set of SCCs for another fifteen months, until December 27, 2022. By then all contracts relying on the old SCCs must be replaced with the 2021 SCCs.

If you have questions about the 2021 SCCs or data protection in general, don’t hesitate to reach out to us at contact@synchlaw.se.

News and Insights
Blog Posts

Responsibility of online platforms and the regressive opinion of the Advocate General

08/12/2020

This blog post was written by My Byström, lawyer at Synch A comment on the opinion of the Advocate General in joined cases Youtube (C-682/18) and Cyando (C‑683/18) In December, the CJEU is expected to deliver its judgement in the joined cases Youtube and Cyando, where questions regarding the liability of platforms for user uploaded materials have […]

News

SYNCH HAS BEEN SHORTLISTED FOR FIRM OF THE YEAR – COPYRIGHT & DESIGN

13/05/2022

Managing IP has published the EMEA shortlists for the annual Managing IP Awards 2022. We are honoured to announce that Synch has been shortlisted for “Firm of the Year – Copyright & Design”. Fantastic news for Synch and our brilliant IP team!

News

WESYNCH IS A SERVICE THAT LETS YOU USE HIGH QUALITY LEGAL TOOLS FROM SYNCH, WHERE AND WHEN YOU WANT, AT AFFORDABLE PRICES AND WITH GREAT FLEXIBILITY

07/05/2022

Synch wants to make business easier and has developed WeSynch – a suite of quick, affordable and high quality digital legal tools, available through a web-based private cloud solution accessible from any device 24/7. WeSynch is for any company, regardless of size, that requires easy access to legal services, expert knowledge and smart digital support […]

Press release

SYNCH HAS ACTED AS LEGAL ADVISOR TO MAFI GROUP AB

02/05/2022

Synch has acted as legal advisor to the owners of MAFI group AB in the sale of the company to Volati Communication Holding LTD. MAFI is a global leader in the design and development of assembly solutions. The company’s core is in the telecom industry. MAFI has played an important role in helping operators and […]

Press release

SYNCH HAS ACTED AS LEGAL ADVISOR TO KEBNI

29/03/2022

The board of Nasdaq First North-listed Kebni AB (publ) has published a decision on a right issue of units and a directed issue of class B-shares. The total of the issue proceeds, including the unit issue, the private placement and full exercise of the warrants included in subscribed unit sums up to units of an […]

Press release

SYNCH ASSISTS INSURELY IN SERIES A FINANCING

18/03/2022

Synch has assisted the Swedish insurance-tech company Insurely in its recent Series A financing round of EUR 19 million, with, among others, American Insight Partners and Swedish Alfvén & Didrikson as new investors in the company. Synch has assisted The Great Collective AB, the company operating under the Insurely brand, in its recent capital raise […]

Press release

Synch has acted as legal advisor to Volumental AB in their latest investment round

21/02/2022

Synch has acted as legal advisor to Volumental in a 13 million dollar investment round with CNI as lead investor. The capital raised will support Volumental’s global expansion and product development. Volumental is a Swedish tech company that help shoppers select the right fit of footwear by leveraging a combination of 3D foot scans, retail […]