01
Tue, Jul
109 New Articles

Draft Act on Standard Contractual Clauses Open for Feedback

Draft Act on Standard Contractual Clauses Open for Feedback

Hungary
Tools
Typography
  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

On 12 November 2020 the European Commission published the new standard contractual clauses (SCCs) on data transfer (model clauses), which would replace clauses C2C and C2P under Commission decisions issued under the European Data Protection Directive. The bill subjects international transfers to significantly stricter administrative conditions in the light of the Schrems II decision. The draft act is open for feedback for 4 weeks. Feedback will be taken into account for finalising the initiative.

Key takeaways regarding the draft implementing decision and the SCCs include:

  • the SCCs cover (i) controller-to-controller transfers, (ii) controller-to-processor transfers, (iii) processor-to-processor transfers and (iv) processor-to-controller transfers (in particular where the EU processor combines personal data received from the third-country controller with personal data collected in the EU).
  • the general clauses impose stricter conditions and accountability requirements, notification and regulatory reporting obligations; in addition to the conclusion of the general clauses, the parties shall document, inter alia, an impact assessment on data transfers.
  • controllers and processors should select the module clauses applicable to their situation and tailor their obligations under the SCCs to their corresponding roles and responsibilities in relation to the data processing at issue. 
  • controllers or processors may incorporate the SCCs into a broader contract and may include additional clauses or safeguards, provided that they do not contradict directly or indirectly the SCCs or prejudice data subjects’ fundamental rights or freedoms.
  • controllers and processors may continue to rely on the existing SCCs during a transitional period of one year from the adoption of the new SCCs, provided that the contract remains unchanged, with the exception of the inclusion of necessary supplementary measures to ensure that the transfer of personal data is subject to appropriate safeguards.

The adoption process for the SCCs requires an opinion of the European Data Protection Board and the European Data Protection Supervisor, and the positive vote of EU Member States through the comitology procedure. The final SCCs are expected to be adopted in early 2021.

By Adrienn Megyesi, Partner, KCG Partners Law Firm

Hungary Knowledge Partner

DLA Piper is a global law firm with lawyers located in more than 40 countries throughout the Americas, Europe, the Middle East, Africa, and Asia Pacific. This positions us to help clients with their legal needs around the world.

With more than 60 lawyers, including 14 partners, and a staff of over 140, DLA Piper Hungary is one of the largest international law firms operating in Hungary. What makes us stand out is that we offer not only legal services but also tax and business advisory support in a fully integrated manner. We maximize synergies between legal, tax, and business advisory services to offer a unique service for our clients, particularly in regulated industries such as energy, infrastructure, life sciences, banking, and telecommunications.

We are a true full-service firm, providing our private and public sector clients with advice on all aspects of their business. This includes transaction-related advice, people and employment, commercial dealings, litigation, information technology, media and communications, intellectual property, insurance, tax, real estate, and restructuring plans.

DLA Piper Hungary has received numerous professional awards and is consistently ranked among the top law firms in Hungary by international rankings. We are ranked #1 by Mergermarket among the law firms active in Hungary based on the volume of M&A deals handled between 2005 and 2024.

Firm's website.

Our Latest Issue