Mischon de Reya issues Brexit notice concerning unsure data rights and contracts
Mischon de Reya, a law firm in London, has sent out a notice to all of its online gambling partners expressing many new Brexit concerns regarding employees, data protection rights and services contracts that affect the sector in one way or another.
The iGaming industry has fortunately been going through a much easier adaptation period than most other industries such as tourism, trade, exports etc… through this Brexit journey as the UK now looks for a future outside the EU. A large portion of operators had to make some huge adjustments during this transitional period.
Despite the fact that the EU and the UK have already agreed on a ‘Trade and Cooperation Agreement’ (TCA), most gambling firms and businesses are still not sure what their future will look like, especially regarding their business relations with both sides. And what brings along a huge batch of concern is the fact that both parties have not yet chosen a final ‘post-Brexit data protection regime’, which will be a primary agreement that will oversee the data transfers concerning digital trade.
As of now, businesses in the United Kingdom have been given a bridging period that will last for four months, and could be extended by two months, and the EU Commission will apparently be tackling an ‘adequacy decision’ about the future of the UK’s data transfers.
Mischon de Reya stated:
If, however, the EU does not accept that the UK’s data protection regime is adequate following the bridging period, contracts which involve the transfer of personal data from the EU to the UK may need to be revisited – to reflect the guidance issued by the European Data Protection Board, after the Schrems II decision, in relation to international data transfers.
The London-based firm supports the narrative pushed by EU trade body the European Gaming & Betting Association (EGBA) that highlighted the fact that if there is no long-term deal concerning data transfers between both sides, the issue will be the ‘most concerning outstanding issue with Brexit’.
Moreover, the firm was quick to warn its partners that they should perform their own individual assessments of their ‘intra-group and external contracts’, as well as taking note of just how they would be affected if the EU comes out and says that the British data protection regime is unfit or inefficient.
The firm went on to say:
Businesses should also consider the extent to which they will continue to transfer personal data across UK and EU borders. If processing operations in relation to a customer take place in both the EU and the UK/Gibraltar, there is a risk that any data protection breach could result in overlapping investigations, and two sets of fines.
And even though the UK acquired a TCA with their neighbours which will make sure there is a tariff-free trade on goods, the London firm still said that the UK will not be treated the same, and will be seen as a third country, separate from the EU states.
Mischon also made sure to let its partners know that they should be certain to protect employment contracts, since operators have to prepare themselves for the “fact that employees may not be able to relocate across the EU border without encountering some degree of friction”.
Furthermore, the company also reflected on major business issues and worries, and said how operators must go over their current service contracts in or involving the EU, seeing as the ‘TCA is largely silent on services’. Even though many professional arrangements now all depend on the further UK and EU negotiations, some results could possibly be formed by each select state and how they decide to assist British business.