SaaS Agreements – GDPR – EU-US Privacy Shield Invalid

On the 16th of July 2020 the EU-US Privacy Shield was ruled invalid with immediate effect by the European Court of (“CJEU”). The steps that SaaS suppliers now need to take depend on the scale and type of international data flows and the transfer mechanisms used. If you rely solely upon the EU-US Privacy Shield for transfers to the US, you must replace the Privacy Shield with the EU Commission’s Standard Contractual Clauses (“SCCs”).

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SaaS Agreements – Brexit – Transition Period

Brexit has now taken place and the UK has left the EU. However until the end of the transition period the UK is still treated as being part of the EU to enable an EU trade deal to be negotiated. This means that although SaaS suppliers and SaaS customers can continue to lawfully process and transfer personal data between the EU and the UK until the expiry of the transition period on the 31st of December 2020, SaaS suppliers and SaaS customers still need to take action now to amend existing documents to reflect that fact that the UK is no longer part of the EU.

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SaaS Agreements – Brexit – Prepare Now

As a SaaS Supplier or SaaS customer you will be aware that the UK plans to leave the EU on the 29th of March 2019 – Brexit. In light of the various leaving scenarios currently being discussed of which a “no deal Brexit” is looking likely, it is essentail that SaaS suppliers and SaaS customers take steps now to ensure that they can continue to lawfully process and transfer personal data between the EU and the UK following Brexit.

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SaaS Agreements – FAQs – EU Standard Contractual Clauses

EU model clauses are standard data processing agreements that have been approved by the EU Commission as providing adequate protection. There are currently two sets of standard contractual clauses for transfers of personal data between data controllers and one set for transfers between a data controller and a data processor. EU model clauses must be used unamended (other than where specific details may be added, as set out in the notes to the clauses).

Where personal data is transferred from:

a data controller in the EU (SaaS customer) to a data processor outside of the EEA (SaaS supplier); or
a SaaS supplier within the EU to a sub-processor located outside of the EEA;

the SaaS supplier will need to enter into EU model clauses with the SaaS customer or SaaS sub-processor, as applicable.

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