On January 23rd 2019, the European Commission adopted its adequacy decision in relation to the export of personal data from the European Union (EU) to Japan. Concurrently, Japan has adopted an equivalent decision in relation to the export of personal data from Japan to the EU. Such mutual decision is the result of two-years of dialogue and negotiations between both parties.
According to a joint statement issued by Věra Jourová (Commissioner for Justice, Consumers and Gender Equality) and Haruhi Kumazawa (Commissioner of the Personal Information Protection Commission of Japan), “these mutual adequacy findings create the world’s largest area of safe data transfers. They build on the high degree of convergence between the two systems, which rest notably on an overarching privacy law, a core set of individual rights and enforcement by an independent data protection authority.”
As detailed in the European Commission’s press release, prior to the European Commission’s adoption of the adequacy decision, Japan put in place a number of additional safeguards to ensure that personal data originating from the EU is adequately safeguarded under Japanese privacy laws. Such safeguards include:
- adopting a set of Supplementary Rules applicable to Japanese companies receiving personal data from the EU to align differences between the EU and Japanese data protection regimes. These include strengthening protection of sensitive data, data subjects rights and the rules on onward transfer of personal data originating from the EU. Such rules are enforceable by the Japanese data protection authority and courts;
- assurances from the Japanese government that access by Japanese public authorities to personal data originating from the EU for criminal law enforcement and national security purposes would be limited to what is necessary and proportionate and subject to independent oversight by the Japanese data protection authority and effective redress mechanisms; and
- a complaint-handling mechanism administered by the Japanese data protection authority to investigate and resolve complaints from EU data subjects about access to their personal by Japanese public authorities. Our take The EU’s adequacy decision is an important step in streamlining the flow of personal data between the EU and Japan. Whilst EU-based organisations will still need to put in place appropriate data processing and data sharing provisions with Japanese counterparties, they will no longer be required to enter into additional export arrangements such as the EU Model Clauses, thereby eliminating the time, workload and formalities associated with such mechanisms.
- The adequacy decision reflects the European Commission’s commitment to engage with key trading partners in Asia. In line with this, it has also been in dialogue with South Korea since 2015 with the aim of working towards an adequacy finding, although these discussions remain ongoing at this stage.
- The EU’s adequacy decision compliments the EU-Japan Economic Partnership Agreement (coming into force in February 2019) which will inevitably increase the flow of data, including personal data, between both territories (see press release here).
- The mutual adequacy findings will allow for the free flow of personal data from the EU to Japan and vice-versa.
Our take
The EU’s adequacy decision compliments the EU-Japan Economic Partnership Agreement (coming into force in February 2019) which will inevitably increase the flow of data, including personal data, between both territories (see press release here).
The EU’s adequacy decision is an important step in streamlining the flow of personal data between the EU and Japan. Whilst EU-based organisations will still need to put in place appropriate data processing and data sharing provisions with Japanese counterparties, they will no longer be required to enter into additional export arrangements such as the EU Model Clauses, thereby eliminating the time, workload and formalities associated with such mechanisms.
The adequacy decision reflects the European Commission’s commitment to engage with key trading partners in Asia. In line with this, it has also been in dialogue with South Korea since 2015 with the aim of working towards an adequacy finding, although these discussions remain ongoing at this stage.
