Efficient Data Transfer Solutions Within Corporate Groups

Within corporate groups, personal data is frequently exchanged between affiliated companies for central functions such as HR or IT operations. However, these data transfers are subject to stringent data protection regulations under the GDPR, which does not provide exemptions for corporate structures. Therefore, it is essential to comply with applicable data protection regulations even for internal data transfers.

For each transfer of personal data within the corporate group, it is necessary to determine whether it constitutes a simple data transfer (with sole responsibility of each company), data processing on behalf of others, or joint responsibility. In cases of data processing on behalf of others or joint responsibility, appropriate data protection agreements must be concluded in accordance with Articles 28 or 26 of the GDPR.

Internal Data Transfer Agreement as a Simple Solution

To avoid a multitude of individual agreements, affiliated companies can enter into an internal data transfer agreement. This agreement transparently outlines which companies export and import data, the purposes of such transfers, the types of data involved, and the relevant data protection arrangements (data processing on behalf of others or joint responsibility).

Such internal data transfer agreements are crucial for making complex data flows within the corporate group transparent and avoiding contractual chaos. They significantly facilitate compliance with data protection requirements by encompassing the necessary data protection agreements (data processing agreements under Article 28 GDPR, joint responsibility agreements under Article 26 GDPR, and EU standard contractual clauses).

Contents of an Internal Data Transfer Agreement

This agreement should consider various data protection arrangements and transparently depict the details of data processing within the corporate group. It is important to treat data transfers outside the EU/EEA separately and clearly allocate data flows to the three main categories (transfers outside the EU/EEA, joint responsibility, and data processing on behalf of others).

For each of these categories, the involved companies and details of the data processing (such as data types, data subjects, processing purposes, and methods) should be precisely described. All involved companies within the group should be able to sign or join the internal data transfer agreement, with appropriate accession clauses provided.

An internal data transfer agreement is thus a central instrument to ensure compliance with data protection standards within a corporate group and to guarantee transparency over data flows.