Below is a summary of the following online platform laws, the EU Digital Services Act, the European Accessibility Directive and the UK Online Safety Act, the UK Digital Markets Competition and Consumers Act and the EU Revised Product Liability Directive, that will impact SaaS suppliers and SaaS customers in 2025. Some of these laws apply extra-territorially, meaning the laws apply even when a SaaS supplier is not located in the UK or the EU (respectively). It is important to be aware of these new laws in order to assess whether
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SaaS Agreements – New EU and UK Data Security Laws
Below is a summary of the following data security laws, the EU Network and Information Systems Directive 2, the EU Digital Operational Resilience Act, the EU Cyber Resilience Act, the EU Critical Entities Resilience Directive and the UK Product Security and Telecommunications Infrastructure Act that will impact SaaS suppliers and SaaS customers in 2025. Some of these laws apply extra-territorially, meaning the laws apply even when a SaaS supplier is not located in the UK or the EU (respectively).
It is important to be aware of these new laws in order to assess whether or not they apply to your particular SaaS business, products and services.
Continue readingSaaS Agreements – New EU and UK Data Laws
Below is a summary of the EU Artificial Intelligence Act, the EU Data Act and the UK Data Use and Access Act that will impact SaaS suppliers and SaaS customers in 2025. These laws will apply extra-territorially, meaning the laws apply even when a SaaS supplier is not located in the UK or the EU (respectively). It is important to be aware of these new laws in order to assess whether or not they apply to your particular SaaS business, products and services. The EU AI Act applies to AI systems and AI models and categorises AI systems into different risk categories.
Continue readingSaaS Agreements – DORA – ICT Supplier Obligations
SaaS suppliers obligations under the Digital Operational Resilience Act,(“DORA”), (Regulation (EU) 2022/2554 on digital operational resilience for the EU financial sector), are effective from the 17th of January 2025. From this date DORA provisions must be included in contracts entered into between financial services entities subject to DORA and their third party providers of ICT Services. As SaaS suppliers are third party providers of digital and data services on an ongoing basis they will be third party providers of ICT services if their SaaS customers are regulated by DORA. Both
Continue readingSaaS Agreements – FAQs – Restricted Transfers
Restricted transfers are a type of international data transfer to which special rules apply. SaaS suppliers and SaaS customers are responsible for complying with the relevant rules when making or permitting restricted transfers of personal data to their suppliers, customers, sub-processors, group companies and partners.
What is an international data transfer?
An international data transfer occurs when personal data is sent or transmitted from one country to another.
This includes:
Continue readingSaaS Agreements – Data Protection: UK-US Data Bridge
On Friday the 22nd of September the UK agreed its own transfer mechanism which can be used instead of UK standard contractual clauses.
From the 12 October 2023, SaaS Suppliers and SaaS Customers can start to transfer UK personal data to entities located in the USA provided that the US entity is certified under the new “UK Extension to the EU-US Data Privacy Framework” (UK-US Data Bridge).
This now means that all transfers of UK personal data made to US companies certified under the UK-US Data Bridge by SaaS companies will be deemed to be to a third country that has adequate data protection laws.
Once a US organisation has been certified and is publicly placed on the DPF List they can receive EU personal data through the DPF.
Continue readingSaaS Agreements – Data Protection: EU-US Data Privacy Framework (DPF)
In July 2023 the EU-US Data Privacy Framework, (DPF) was finally agreed between the EU and the USA. The DPF now provides a new transfer mechanism for SaaS suppliers and SaaS customers to use when transferring EU personal data to the USA. The DPF can be used instead of EU standard contractual clauses.
This means that all transfers of EU personal data made to US companies certified under the DPF by SaaS companies will be deemed to be to a third country that has adequate data protection laws.
Continue readingSaaS Agreements – Data Retention and Deletion
In compliance with their respective obligations under the GDPR, SaaS suppliers and SaaS customers must only keep personal data for as long as necessary and as specified to data subjects. SaaS suppliers should include their obligations in relation to retention and deletion of personal data when acting as a data processor in their SaaS agreement and when acting as a data controller in their privacy policy.
Continue readingSaaS Agreements – Data Protection – New EU Standard Contractual Clauses
On the 4th of June 2021 the EU Commission announced the adoption of new Standard Contractual Clauses (new SCCs). The new SCCs must be used by all SaaS suppliers and SaaS customers who transfer personal data from the EU to countries outside the EU/EEA (third countries) when the old SCCs (old SCCs) are repealed on the 27th of September 2021.
Continue readingSaaS Agreements – GDPR – US Companies
From the 25th of May 2018 the EU General Data Protection Regulation (GDPR) will come into force and change existing UK data protection laws. The GDPR does not just apply to SaaS suppliers and SaaS customers located in the EU. The GDPR also applies extraterritorially, i.e. to SaaS suppliers and SaaS customers located outside of the EU, for example in the USA, as set out below.
GDPR Applies to US SaaS Customers and SaaS Suppliers
The GDPR will apply to SaaS suppliers and SaaS customers located in the USA if:
They offer goods or services to SaaS customers located within the EU; or
They monitor the behaviour of EU data subjects;
Even though the SaaS supplier or SaaS Customer is not located within the EU.
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