Search
Contact
27.07.2022 | KPMG Law Insights, KPMG Law Insights

The countdown is on: Only 5 months left for Schrems II implementation deadline

The use of the new standard contractual clauses for data transfers to third countries has already been mandatory for new contracts since September 27, 2021. The corresponding implementing decision of the EU Commission ((EU) 2021/914 COM) gives those responsible until December 27, 2022 to adapt existing contractual relationships to the new models. Thereafter, all standard contractual clauses already concluded must also comply with the new requirements. As of today, those responsible have only five months left for the final implementation. However, this is not done with a mere exchange of forms.

Complex implementation

The conclusion of the new standard contractual clauses is not a mere formality, as both data transmitters and data recipients have additional obligations to fulfill. Particularly noteworthy is the obligation of the data transmitter to conduct a so-called “Transfer Impact Assessment” (abbreviated to “TIA”); i.e. an extensive risk assessment of the third country transfer in the individual case. In this context, the individual particularities of the law in the target country must be taken into account. Depending on the outcome, specific contractual, organizational or technical compensatory measures to protect personal data must be identified, agreed and implemented. As this can lead to considerable additional expenses for the data recipient, it is not self-evident that the relationship will continue under the current conditions.

Focus of the authorities

The legally compliant implementation of standard contractual clauses and the adoption of effective compensatory measures are currently the focus of regulatory activities. For example, the data protection supervisory authorities of France, Austria and Italy have now indicated that the compensatory measures provided by a search engine provider when using its analytics tool are not sufficient to ensure an adequate level of data protection. The responsible parties concerned were prohibited from using the analysis tool. The problems identified are likely to exist in a similar form at other U.S. providers. In addition, the data protection authorities of the states of Berlin, Lower Saxony, Rhineland-Palatinate, Saxony, Saxony-Anhalt and Bavaria are currently conducting a coordinated review of web hosters’ order processing contracts. The questionnaire used for this purpose also contains a section on third-country transfers and asks which version of the standard contractual clauses is used for this purpose.

Liability risks

The use of previous templates is no longer permitted after the transposition deadline and would constitute a breach of Art. 44 and 46 of the General Data Protection Regulation. In particular, this may result in the prohibition of the relevant data processing as well as fines of up to 4% of the annual turnover or 20,000,000 euros. In each case, the higher amount is decisive. In addition, there is a risk of claims for damages from those affected and, if necessary, warnings from competitors. It should not be neglected that the implementation of the new requirements – due to the transparency obligations under data protection law – can be ascertained by third parties without much effort, which increases the risk for data controllers of becoming the target of such measures.

Conclusion

Responsible parties who have not yet started updating standard contractual clauses in use should do so now at the latest. Often there is a multitude of such contracts and each one of them – in addition to the creation of a TIA – has to be individually redrafted and negotiated. The adaptation process is multi-step and should not be underestimated in terms of its complexity. Delayed implementation is easy to spot and poses a high liability risk that can be avoided by acting early.

Explore #more

20.02.2026 | KPMG Law Insights, Legal Financial Services

Consumer Credit Directive (CCD II) tightens rules for the banking industry

The revised Consumer Credit Directive fundamentally reorganizes the consumer credit business. From November 20, 2026, an extended scope of application and significantly stricter requirements will…

20.02.2026 | In the media

Guest article in PERSONALFÜHRUNG! Between tradition and transformation – HR in SMEs

The German SME sector is an exciting learning field for other organizations. Its structural characteristics not only shape the way decisions are made, but also…

19.02.2026 | Deal Notifications

KPMG Law advises DKB Finance and DKB Kreditbank on the sale of FMP Forderungsmanagement Potsdam to LOANCOS

KPMG Law Rechtsanwaltsgesellschaft mbH (KPMG Law) provided comprehensive legal advice to DKB Finance GmbH and DKB Kreditbank AG on the sale of FMP Forderungsmanagement Potsdam…

17.02.2026 | KPMG Law Insights

Establishing complaint management – guidelines for companies and administration

Complaints are great. They show unvarnishedly where processes, communication or services are not working. And even if they initially seem stressful for everyone involved, those…

16.02.2026 | KPMG Law Insights

Tenancy law reform 2026 sets tighter framework conditions for landlords

The planned 2026 tenancy law reform limits furnishing surcharges, caps index-linked rents, cuts short-term rental models and tightens the obligations for landlords. The aim is…

16.02.2026 | Deal Notifications

KPMG Law and KPMG advise the majority shareholders of Kahl GmbH & Co. KG on the sale to the Dutch Paramelt Group

KPMG Law Rechtsanwaltsgesellschaft mbH (KPMG Law) and KPMG AG Wirtschaftsprüfungsgesellschaft (KPMG) have advised the majority shareholders of Kahl GmbH & Co KG (Kahl), based in…

05.02.2026 | KPMG Law Insights

AWG amendment provides for tougher penalties for sanction violations

Due to the ongoing Russian war of aggression against Ukraine, the EU wants to make it easier to prosecute violations of EU sanctions. The corresponding…

03.02.2026 | In the media

KPMG Law guest article in private banking magazine: The digital euro is coming – how well prepared is private banking?

The new digital central bank money is changing payment transactions and liquidity management. KPMG Law expert Marc Pussar assesses what the digital euro means for…

02.02.2026 | KPMG Law Insights

Reducing incapacity to work and sick leave: What labor law allows

High absenteeism and sickness rates can be reduced. There are various ways in which employers can achieve this. Chancellor Merz wants to abolish sick notes

30.01.2026 | KPMG Law Insights

DAC8 implementation increases the risk of criminal tax prosecution in crypto trading

Since January 1, 2026, the Crypto Asset Tax Transparency Act (KStTG) in force. It implements DAC8 (EU Directive 2023/2226 – Directive on Administrative Cooperation) in…

Contact

Francois Heynike, LL.M. (Stellenbosch)

Partner
Head of Technology Law

THE SQUAIRE Am Flughafen
60549 Frankfurt am Main

Tel.: +49-69-951195770
fheynike@kpmg-law.com

Miriam Oussalah

Manager

Münzgasse 2
04107 Leipzig

Tel.: +49 341 22572-500
moussalah@kpmg-law.com

© 2026 KPMG Law Rechtsanwaltsgesellschaft mbH, associated with KPMG AG Wirtschaftsprüfungsgesellschaft, a public limited company under German law and a member of the global KPMG organisation of independent member firms affiliated with KPMG International Limited, a Private English Company Limited by Guarantee. All rights reserved. For more details on the structure of KPMG’s global organisation, please visit https://home.kpmg/governance.

KPMG International does not provide services to clients. No member firm is authorised to bind or contract KPMG International or any other member firm to any third party, just as KPMG International is not authorised to bind or contract any other member firm.

Scroll