The German Association for Information Technology, Telecommunications and New Media e. V. (Bitkom) warns in a Press release against the threat of "data chaos" in the context of Brexit. There is currently a transitional phase in which the Law of the European Union (EU) continues to apply to the United Kingdom and in which the United Kingdom remains a member of the EU Customs Union and the EU internal market. This arrangement will expire on 31 December 2020.
This is particularly important for Cloud Hoster and other companies operating within the United Kingdom Data of customers from the EU process a problem because the legal basis for the exchange of data no longer applies.
Great Britain becomes a third country
If no agreement is reached on future relations between the UK and the EU, the UK will be classified as a third country in the field of data protection from next year. The free movement of data between Germany or other EU member states and the UK would then be prohibited.
"The United Kingdom is one of the most important locations for processing data, for example in the areas of logistics, customer relations and mobility.
Bitkom President Achim Berg
According to the industry association's estimates, a brexite without an agreement would therefore affect not only large corporations, but also medium-sized companies and start-ups. Alternative platforms like the European Cloud Gaia-X and the Public Cloud from Lidl and Kaufland are currently under construction, but the necessary infrastructure will not be ready in time to take over the data previously processed in the UK from 1 January 2021.
Adequacy decision of the EU Commission necessary
The current state of negotiations makes it highly unlikely that a trade agreement will be concluded by the end of the month. In order to be able to continue to exchange data legally with Great Britain, bitkom is demanding a so-called adequacy decision from the EU Commission.
This would review the level of data protection in the UK and continue to allow data traffic if it is ensured that cloud services there comply with European data protection law. According to Berg, such an adequacy decision must not become a pawn in the Brexit negotiation process. The expert estimates the consequences for both parties if data transfers are discontinued to be even more drastic than the "truck queues at the border."
