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

05.01.2026 | In the media

KPMG Law expert in the Börsen-Zeitung on the digital euro

The digital euro is set to arrive by 2029. However, the central bank still has a lot of convincing to do. There is a great…

22.12.2025 | KPMG Law Insights

New EU directive tightens environmental criminal law

Environmental crime will be punished more severely in future. Directive (EU) 2024/1203 on the protection of the environment through criminal law is being transposed into…

19.12.2025 | KPMG Law Insights

Digital Omnibus: More efficiency instead of deregulation

The EU Commission wants to streamline digital laws. On November 19, 2025, it presented its proposals for the “Digital Omnibus” (including a separate AI Omnibus).…

18.12.2025 | Deal Notifications

KPMG Law and KPMG advise the shareholders of Frerk Aggregatebau on the sale to DEUTZ

KPMG Law Rechtsanwaltsgesellschaft mbH (KPMG Law) and KPMG AG Wirtschaftsprüfungsgesellschaft (KPMG) provided comprehensive advice to the shareholders of Frerk Aggregatebau GmbH (Frerk) on the sale…

17.12.2025 | KPMG Law Insights

AI-supported risk checks of NDAs and CoCs: how legal departments benefit

Artificial intelligence can relieve legal departments of routine tasks such as checking non-disclosure agreements (NDAs) or codes of conduct (CoCs). These documents are part of…

16.12.2025 | In the media

Interview with KPMG Law experts: CSDDD after the omnibus: “Toothless tiger” or pragmatic solution?

The agreement on the Omnibus I package is causing discussion. Among other things, the thresholds for the EU Supply Chain Directive (CSDDD) have been significantly…

15.12.2025 | In the media

KPMG Law guest article in Tagesspiegel Background: What the digital omnibus means for companies today

The debate on the digital omnibus has only just begun. Companies should contribute their expertise to the ongoing process and strengthen their internal foundations –…

12.12.2025 | KPMG Law Insights

Focus offshore: NRW buys extensive tax data on international tax havens

According to recent press reports from December 11, 2025, the state of North Rhine-Westphalia has purchased an extensive data set with tax-relevant information from international…

12.12.2025 | KPMG Law Insights

Legal changes in 2026: New obligations and relief for companies

Rarely has the new year been as difficult for companies to plan as 2026. All the signs in the EU are currently pointing towards reducing…

12.12.2025 | Deal Notifications

KPMG Law advises The Chemours Company on the implementation and closing of a large-volume factoring financing

KPMG Law Rechtsanwaltsgesellschaft GmbH (KPMG Law) advised the US-American Chemours Company on the implementation of a cross-border factoring financing. The legal implementation was managed by…

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

© 2024 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