The UK government has conceded that Britain could be compelled to adhere to EU data protection laws for years after Brexit to maintain the free flow of data with European countries. A new position paper published on Thursday acknowledges that the European Commission will have unilateral power to decide whether the UK's legislative framework meets the 'adequacy' test for data transfers.
While officials expect the UK to pass the adequacy test at the time of Brexit in 2019, future divergence from EU rules on data collection and protection could jeopardise this status. The paper reveals hopes for an early mutual recognition agreement that respects UK sovereignty and removes uncertainty over maintaining adequacy.
The CBI has warned that the UK's multi-billion pound digital economy risks isolation without a transition agreement. TechUK cautioned that securing a legal framework for data flows will take time, with previous adequacy agreements with non-EU countries taking 18 months or more. Any disruption to cross-border data flows would be 'economically costly' to both the UK and the EU.
