# UK passes ‘adequacy’ test but are calls for GDPR protection cuts a step too far? Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-08-25 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: UK Data Protection Practices Under Review: Adequacy Ruling Meta Description: Discover how the European Commission's decision on 'adequacy' paves the way for personal data to be transferred freely from EU to UK. URL: https://financedigest.com/uk-passes-adequacy-test-but-are-calls-for-gdpr-protection-cuts-a-step-too-farhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/graphicstock-hipster-businessman-showing-concept-of-online-business-security-on-virtua-sbi-305116439-3-1736837975996-compressed.jpg) _By_ **_Aoife Sexton,_** _Chief Privacy Officer and Chief of Product Innovation at_ [_Trūata_](https://www.truata.com/) For a nerve-racking period of six months, the UK’s data protection practices were under close examination. A review was being undertaken, as the government was given time to prove it could continue to operate to the rigours of the GDPR following its exit from the EU. Following this review process, and demonstrating the importance of international transfers of personal data to the new data economy and global privacy framework, the European Commission adopted a decision backed by representatives of the EU countries in favour of granting the UK data ‘adequacy’, paving the way for personal data to be transferred freely from the EU to the UK. This is a major [boost for businesses](https://www.financedigest.com/uk-businesses-call-for-looser-immigration-rules-to-boost-growth.html "UK businesses call for looser immigration rules to boost growth") who operate on a continental scale, especially following a difficult year with the Covid-19 pandemic having a detrimental impact across many industries. However, the adequacy [ruling comes with a warning from the European](https://www.financedigest.com/four-european-countries-call-for-special-treatment-of-defence-in-eu-debt-rules-document.html "Four European countries call for special treatment of defence in EU debt rules – document") Commission that this is not a binary decision, and the UK will be under close scrutiny. This is in reaction to the country’s continuing signals of an intention to diverge from the European consensus on [data protection](https://www.financedigest.com/4-steps-you-should-be-taking-to-protect-data.html "4 Steps You Should Be Taking To Protect Data") and, in particular, the GDPR. There is an emerging view in the UK that it has an opportunity to cement its position as a [world leader](https://www.financedigest.com/world-leaders-to-attend-queen-elizabeths-funeral.html "World leaders to attend Queen Elizabeth’s funeral") in data. The UK Government is seemingly being advised that the GDPR is prescriptive and inflexible, with a view that reform of the GDPR could accelerate [growth in the digital](https://www.financedigest.com/digital-ad-demand-helps-publicis-hike-2021-growth-outlook.html "Digital ad demand helps Publicis hike 2021 growth outlook") economy. **The battle over AI** One point of contention is the implications of the GDPR for the use of [artificial intelligence](https://www.financedigest.com/types-of-artificial-intelligence.html "artificial intelligence") (AI) such as machine learning. As a technology-agnostic and principles-based regulation, the GDPR primarily [addresses top-level issues](https://www.financedigest.com/havensrock-thrive-app-launched-by-punter-southall-health-and-protection-to-address-workplace-mental-health-issues.html "Havensrock Thrive App launched by Punter Southall Health and Protection to address workplace mental health issues"), such as the repeatable governance processes and frameworks that exist within organisations. However, in the area of AI, the UK Government is being advised that the [current legislation is hampering progress in the industry](https://www.financedigest.com/dry-ice-market-2015-outlook-current-and-future-industry-landscape-analysis-2025.html "Dry Ice Market 2015 Outlook, Current and Future Industry Landscape Analysis 2025"), making it costly and impractical for organisations to use AI to automate routine processes. This is because the GDPR stipulates safeguards that ensure that an individual should not be subject to a decision based solely on automated processing, including profiling, which produces legal effects or similarly, significantly affects that individual. The [Taskforce on Innovation, Growth and Regulatory Reform](https://www.gov.uk/government/publications/taskforce-on-innovation-growth-and-regulatory-reform/taskforce-on-innovation-growth-and-regulatory-reform-tigrr-terms-of-reference) (TIGRR), set up by Downing Street, has highlighted that this requirement makes it burdensome, costly and impractical for organisations to use AI to automate routine processes because they must also have a manual process for individuals who opt out of automatic processing. As such, TIGRR has recommended scrapping this safeguard. Notably, [the taskforce’s 130-page report](https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/994125/FINAL_TIGRR_REPORT__1_.pdf) has received an endorsement from Prime Minister Boris Johnson. A statement made earlier this year from the Secretary of State for Digital, Culture, Media and Sport, Oliver Dowden, [made it clear](https://www.ft.com/content/ac1cbaef-d8bf-49b4-b11d-1fcc96dde0e1) that he wants to encourage more businesses and organisations to use personal data for innovation and eventually appoint the next Information Commissioner who would be charged with ensuring that “people can use data to achieve economic goals”. **Recognising fundamental human rights** By proposing to [cut key protections](https://www.financedigest.com/emergency-call-services-telcos-urge-eu-to-protect-telecoms-networks-from-power-cuts.html "Emergency call services, telcos urge EU to protect telecoms networks from power cuts") from the UK’s implementation of the GDPR and by overtly supporting a stripped down, less burdensome regulatory approach to the commercial exploitation of personal data, the Government is being advised that this would result in a business and innovation-friendly environment. Undoubtedly, this could be the much-needed boost for the UK private sector as it recovers from the [impact of both the pandemic and Brexit](https://www.financedigest.com/brexit-might-impact-our-migrant-pool-magazine.html "“Brexit might impact our migrant pool.”-Magazine"). In order to drive innovation, growth, and competitiveness for the post-Brexit UK, the taskforce suggests a reform of the GDPR to place greater emphasis on the legitimacy of data processing and shifting the focus to whether or not data usage is really in the interests of the data [owner and society](https://www.financedigest.com/owner-of-leading-discount-dining-clubs-tastecard-and-gourmet-society-appoints-new-chairperson.html "Owner of leading discount dining clubs tastecard and Gourmet Society appoints new Chairperson    "). However, finding the right balance between this focus and the rights of the citizens or consumers is not easy. The [EU Charter of Fundamental Rights](https://ec.europa.eu/info/aid-development-cooperation-fundamental-rights/your-rights-eu/eu-charter-fundamental-rights_en) views privacy and data protection as key human rights and vital foundations on which any data economy should be built. Indeed, around the world, there has been an exponential increase in new [data protection laws](https://www.financedigest.com/finalised-pan-european-data-protection-laws-set-the-new-standard-for-a-privacy-friendly-business-environment.html "Finalised Pan-European data protection laws set the new standard for a ‘privacy-friendly’ business environment"), many of which are being modelled on the GDPR. Also existing laws, such as those in [Canada and Australia](https://www.financedigest.com/brazil-to-resume-visa-requirements-for-us-japan-australia-canada-sources.html "Brazil to resume visa requirements for US, Japan, Australia, Canada -sources") are being revised to make them fit for purpose for the new data-driven world that we find ourselves in. If the UK diverges too much from the GDPR or indeed the emerging GDPR-like laws, it runs the risk that it might find itself out of [step with data](https://www.financedigest.com/10-steps-to-stop-lateral-movement-in-data-breaches.html "10 Steps to Stop Lateral Movement in Data Breaches") practices of many other countries, which could complicate its future trade deals— in particular, the international flows of data. **What consumers want** Trūata’s [Global Consumer State of Mind Report 2021](https://74n5c4m7.r.eu-west-1.awstrack.me/L0/https:%2F%2Fcontent.truata.com%2Fen%2Fstate-of-mind-report/1/0102017ae7bbb896-d6110775-5081-4aa9-9a38-2340f5f338d6-000000/4lgU6Cmytmoa3o3P3B_y_0cY6w4=228) found that consumers feel they have been forced to expand their digital footprint during the pandemic and that they have already lost control over how much data is stored about them. In recent months, three-quarters (77%) of global consumers have taken steps to reduce their digital footprint for [fear that they are losing](https://www.financedigest.com/london-fears-losing-luxury-shoppers-to-paris-and-milan.html "London fears losing luxury shoppers to Paris and Milan") control of their privacy. [Businesses and governments need to recognise that people crave and demand privacy in the IoT and big](https://www.financedigest.com/smishing-is-a-new-virus-plaguing-big-business-conversational-commerce-to-the-rescue.html "‘Smishing’ is a new ‘virus’ plaguing big business – Conversational Commerce to the rescue!") data era – or surveillance capitalism as it is sometimes referred to. The fundamental human right to privacy [needs to be protected by strong regulations](https://www.financedigest.com/regulators-need-to-strike-the-balance-between-protection-and-strangulation.html "REGULATORS NEED TO STRIKE THE BALANCE BETWEEN PROTECTION AND STRANGULATION"), now more than ever. [Placing privacy as a priority on the business strategy agenda should not only stem from the threat of consumers looking to take back control of their data or limit their loyalty](https://www.financedigest.com/the-evolution-of-loyalty-and-its-place-in-the-digital-age.html "THE EVOLUTION OF LOYALTY AND ITS PLACE IN THE DIGITAL AGE") to those who act responsibly with that data, but also from the knowledge that data privacy regulations do not curb innovation. Instead, as necessity is often the mother of invention, [data protection laws that are fit for the challenges](https://www.financedigest.com/new-gleif-challenge-facility-extends-ability-to-trigger-updates-of-legal-entity-identifier-data-to-all-interested-parties.html "New GLEIF Challenge Facility Extends Ability to Trigger Updates of Legal Entity Identifier Data to All Interested Parties") of the digital economy can fuel the search for new solutions. In correlation with the rise in global privacy laws, we have seen the emergence of tools and technologies that now empower [businesses to innovate with data in a privacy- compliant way; this is powerful proof that consumer rights and regulatory authorities are not innovation blockers](https://www.financedigest.com/3-ways-to-go-about-testing-your-business-ux-design.html "3 Ways to Go About Testing Your Business’ UX Design"). These privacy-enhancing technologies point to a [future where progress through data-driven transformation](https://www.financedigest.com/future-of-finance-2023-digital-transformation.html "Future of Finance 2023: Digital Transformation") can be, and will be, achieved without the need to infringe the privacy rights of individuals. Our [research shows that privacy will continue on its upward trajectory of importance to consumers around the world](https://www.financedigest.com/deloitte-research-reveals-inaction-on-climate-change-could-cost-the-worlds-economy-us178-trillion-by-2070.html "Deloitte research reveals inaction on climate change could cost the world’s economy US8 trillion by 2070"), and the requirement for strong data protection is not going away. Now is the time for [businesses to embrace technologies that enable them to innovate and remain](https://www.financedigest.com/iran-open-for-business-but-caution-remains-the-watchword.html "Iran: ‘open for business’ – but caution remains the watchword") competitive without compromising consumer privacy. We should [seek the continual evolvement of data privacy laws](https://www.financedigest.com/eu-seeks-deal-on-law-preventing-import-of-deforestation-linked-goods.html "EU seeks deal on law preventing import of deforestation-linked goods"), rather than debate lowering our standards under the guise of the “greater good”. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---