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Data Protection in the Federal Republic of Germany and the European Union: An Unequal Playing Field

Published online by Cambridge University Press:  06 March 2019

Abstract

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With the negotiation of its Data Protection Regulation, the European Union seeks to reform an outdated set of laws that has failed to address the evolving data protection challenges inherent in new technologies such as social networks, e-commerce, cloud computing, and location-based services. This article addresses the forthcoming Data Protection Regulation as well as the current state of data protection law in the EU, with a particular focus on Germany. The first part of the article examines Germany's robust data protection framework and the EU's existing authority. The article then raises key issues related to data protection in Germany and the EU—namely, discrepancies in data protection standards and enforcement among EU Member States—as illustrated by recent, high profile cases involving household names like Facebook, Apple, Google, and Amazon. Through this analysis, the article attempts to explain how and why companies doing business in Germany, but established in other EU Member States, are subject to less stringent data protection standards than German companies. Lastly, the article synthesizes the issues in debate with regard to the draft Data Protection Regulation and offers perspectives on what the Regulation could and should mean for data protection in the EU.

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Articles
Copyright
Copyright © 2014 by German Law Journal GbR 

References

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228 See id. at art. 17.3(b).Google Scholar

229 See id. at art. 17.3(c).Google Scholar

230 See id. at art. 17.3(d).Google Scholar

231 See id. at art. 4.8 & 7.Google Scholar

232 See id. at art. 4.8.Google Scholar

233 See id. at art. 7.3.Google Scholar

234 See id. at art. 7.4.Google Scholar

235 See id. at art. 19.2.Google Scholar

236 Id. Google Scholar

237 See id. at art. 20.1.Google Scholar

238 Id. Google Scholar

239 See id. at art. 20.2(a).Google Scholar

240 See id. at art. 20.2(b).Google Scholar

241 See id. at art. 20.2(c).Google Scholar

242 See id. § 3.4.7.2 of the Explanatory Memorandum.Google Scholar

243 Id. at art. 57.Google Scholar

244 See id. at art. 64.Google Scholar

245 See id. at arts. 58.3–.4.Google Scholar

246 See id. at art. 58.7.Google Scholar

247 See id. at art. 59.1.Google Scholar

248 See id. at arts. 58.8, 59.2, 59.4.Google Scholar

249 See id. at art. 60.Google Scholar

250 See id. at arts. 3.1, 4.13.Google Scholar

251 See id. at art. 3.1; see also, DPD, supra note 10, at art. 4(1)(a).Google Scholar

252 Data Protection Regulation, supra note 9, at art. 3.2.Google Scholar

253 See supra note 224. Several groups have proposed amendments, including MEP Jan Philipp Albrecht, the LIBE rapporteur, on behalf of the Parliament, and Germany. Data Protection Regulation, supra note 9, at art. 3.2. See also, Press Release, German Minister for the Interior Hans-Peter Friedrich and EU Justice Commissioner Viviane Reding Emphasise the Importance of the EU General Data Protection Regulation for the Digital Single Market and the Protection of Fundamental Rights in Europe (Mar. 7, 2013), available at http://europa.eu/rapid/press-release_MEMO-13–177_en.htm?locale=en.Google Scholar

254 See Press Release, German Minister for the Interior Hans-Peter Friedrich and EU Justice Commissioner Viviane Reding Emphasise the Importance of the EU General Data Protection Regulation for the Digital Single Market and the Protection of Fundamental Rights in Europe (Mar. 7, 2013), available at http://europa.eu/rapid/press-release_MEMO-13–177_en.htm?locale=en.Google Scholar

255 Elliott, Simon, The EU Date Protection Regulation: Timing, Privacy & Data Sec. Blog, Feb. 27, 2013, http://www.privacydatasecurityblog.com/2013/02/27/the-data-protection-regulation-where-are-we/.Google Scholar

256 See supra note 224.Google Scholar

257 O'Connor, John, EU Data Protection Vote Delayed, Lexology, May 8, 2013, http://www.lexology.com/library/detail.aspx?g=781c955a-3fbf-40ba-967a-14cbaf7dfb35; see also Press Release, Libe Committee Vote Backs New EU Data Protection Rules (Oct. 22, 2013), available at http://europa.eu/rapid/press-release_MEMO-13–923_en.htm.Google Scholar

258 See Elliott, , supra note 255.Google Scholar

259 Id. Google Scholar

260 Id.; see also, Grande, Allison, EU Regulators Urge Swift Action on Data Protection Reform, Law360, Dec. 4, 2013, http://www.law360.com/articles/493310/eu-regulators-urge-swift-action-on-data-protection-reform.Google Scholar

261 See supra notes 179180 and accompanying text.Google Scholar

262 See O'Carroll, supra note 200.Google Scholar

263 See supra notes 253254 and accompanying text.Google Scholar

264 Data Protection Regulation, supra note 9, at arts. 4.8 & 7.Google Scholar

265 BDSG, supra note 2, §§ 4.1 & 4(a).1.Google Scholar

266 Compare Data Protection Regulation, supra note 9, at arts. 31 & 32, with Amendment to E-Privacy Directive, supra note 147, at art. 4.3.Google Scholar

267 E-Privacy Directive, supra note 147, at Recital 57.Google Scholar

268 Id. Google Scholar

269 See supra notes 159164 and accompanying text.Google Scholar

270 See supra Part C.II.Google Scholar

271 See Hon, W. Kuan, et. al, supra note 104.Google Scholar

272 See supra notes 248251 and accompanying text.Google Scholar

273 Data Protection Regulation, supra note 9, at art. 60.Google Scholar

274 See supra Part D.Google Scholar

275 See DeSimone, Christian, Pitting Karlsruhe Against Luxembourg? German Data Protection and the Contested Implementation of the EU Data Retention Directive, 11 German L.J. 291, 291 (2010) (noting the “evolving corpus of [data protection] law [in Germany] exhibits a singularly-German mindfulness of the historical significance of abrogating fundamental rights within constitutional democracy”).Google Scholar

276 In a Eurobarometer survey, 69% of Germans questioned think their “specific approval” should be sought before any collection and processing of personal data. Attitudes on Data Protection and Electronic Identity in the European Union, European Commission: Eurobarometer 74.3, Jun. 2011, at 3, http://ec.europa.eu/public_opinion/archives/ebs/ebs_359_fact_de_en.pdf. According to that same survey, only 34% of Germans trust online shops will protect their personal data. Id. Google Scholar

277 Over 70% of Germans shop online. Id. at 1.Google Scholar

278 According to a Berlin study, German consumers will choose companies that offer more protection of their data privacy over companies that offer less protection when there is little or no price differential, but the discrepancy between the companies' privacy policies must be clear. Dr. Nicola Jentzsch et al., Study on Monetising Privacy – An Economic Model for Pricing Personal Information (2012), available at http://www.enisa.europa.eu/activities/identity-and-trust/library/deliverables/monetising-privacy (“If there are little to no differences in the prices offered by service providers on homogeneous goods, a competitor who has a reduced data requirement (privacy- friendly service provider) can obtain a competitive advantage as long as this type of differentiation is obvious to the consumer”).Google Scholar

279 For example, a successful movement to challenge the 2007 implementation of the EU Data Retention Directive in Germany “consisted of highly-networked civil and digital rights activists, ideologically-heterogeneous students and academics, and German or European NGOs.” Desimone, supra note 275, at 306.Google Scholar

280 The use of media helped raise awareness for the anti-EU Data Retention Directive movement: “The success of German groups in raising public awareness of a highly-technical topic, publicizing their rarely-at-odds messages, and organizing successful demonstrations and legal actions can be attributed to an extraordinarily effective use of new networked media to convey resources, ideas, and people around Germany and Europe.” Id. at 307.Google Scholar