Background

On 22 November 2017, the Court of Justice of the European Union (“CJEU”) gave judgment in a case taken by the not-for-profit company, Digital Rights Ireland Limited (“DRIL”). DRIL sought an annulment of the European Commission’s Privacy Shield decision. This decision states that the US ensures an adequate level of protection for personal data transferred from the EU to companies in the US under the EU-US Privacy Shield (the “Contested Decision”).

The CJEU ruled that DRIL’s annulment request was inadmissible for two reasons; (1) it cannot show that it is sufficiently affected by the Contested Decision to bring proceedings in its own name; and (2) a lack of standing to bring proceedings in the name of its members, supporters and the general public.

In this case, the DRIL acted as the applicant and the European Commission was the defendant.

Admissibility of the action brought by DRIL in its own name

DRIL presented three arguments to demonstrate the admissibility of the action brought in its own name.

Argument 1: DRIL argued that, given that it possesses a mobile phone and a computer, its own personal data is liable to be transferred to the US pursuant to the Contested Decision. The CJEU rejected this argument. The CJEU ruled that in its capacity as a legal person, DRIL does not possess personal data. The Data Protection Directive only provides for the protection of personal data of natural persons, not legal entities.

Continue Reading CJEU rules Digital Rights Ireland’s Privacy Shield invalidation action inadmissible