1.
Introduction ^
2.
Proposed Directive on certain aspects for the supply of digital content ^
3.
Key areas of criticism and their treatment in the legislative negotiations ^
3.1.
Incompatibility with the GDPR ^
3.2.
Conflict with the fundamental rights nature of data protection ^
3.3.
Legitimisation of the business model of free services ^
A last data protection issue was especially debated in the EP, and revolves around the fact that including contracts that treat personal data as payment for services in a EU legal instrument might provide legitimisation for a business model (free services) that is highly problematic from a data protection angle.39 «Free services» as an economic reality40 put data subjects under wide-spread commercial surveillance («see-through consumer»).41 EU data protection law and especially the GDPR intend to rein this in by strictly applying the principles of purpose limitation and with clearer rules on further compatible processing (Rec. 50 and Art. 6 (4) GDPR)) and lawful processing (e.g. by highlighting that consent cannot always be used as a legal basis (Art. 7 (4) GDPR)). These important restrictions seem to be overturned by the Proposal, as it includes no rules on the matter.42
4.
Arguments for reconciliation ^
4.1.
Proposal could be applied in parallel to the GDPR ^
4.2.
Obligation for the EU legislator to protect personal data ^
4.3.
Pragmatic approach to a new business model ^
5.
Concluding remarks ^
- 1 European Commission (EC), Proposal for a Directive of the European Parliament and of the Council on certain aspects for the supply of digital content [2015], COM(2015) 634 final, Art. 3 (1).
- 2 Council of the European Union (Council), Proposal for a Directive of the European Parliament and of the Council on certain aspects concerning contracts for the supply of digital content (First reading) – General approach [2017], 2015/0287 (COD), Annex «Main Elements of the Compromise», pp. 4 f.; European Parliament (EP), Report on the proposal for a directive of the European Parliament and of the Council on certain aspects concerning contracts for the supply of digital content [2017], A8-0375/2017, pp. 90 f.
- 3 EDPS, Opinion 4/2017 on the Proposal for a Directive on certain aspects concerning contracts for the supply of digital content [2017], 14 March 2017, p. 3.
- 4 Regulation 2016/679/EU of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation), OJ L 2016/119, 1.
- 5 This has been advocated by the EDPS in: EDPS, Preliminary Opinion: Privacy and competitiveness in the age of big data – The interplay between data protection, competition law and consumer protection in the Digital Economy [2014], March 2014, p. 38.
- 6 EC, Proposal for a Directive of the European Parliament and of the Council on certain aspects concerning contracts for the online and other distance sales of goods [2015], COM(2015) 635 final.
- 7 Wendland, GEK 2.0? Ein europäischer Rechtsrahmen für den Digitalen Binnenmarkt, GPR 2016, p. 8 (p. 8).
- 8 EC, Proposal for a Regulation of the European Parliament and of the Council on a Common European Sales Law [2011], COM(2011) 635 final; Wendland, Ein neues europäisches Vertragsrecht für den Online-Handel? Die Richtlinienvorschläge der Kommission zu vertragsrechtlichen Aspekten der Bereitstellung digitaler Inhalte und des Online-Warenhandels, EuZW 2016, p. 126 (pp. 126 f).
- 9 Directive 1999/44/EC of the European Parliament and of the Council of 25 May 1999 on certain aspects of the sale of consumer goods and associated guarantees, OJ L 1999/171, 12.
- 10 Preliminary Opinion, supra note 5, p. 10.
- 11 See: Schulze/Staudenmayer, Digital Revolution – Challenges for Contract Law. In: Schulze/Staudenmayer (Eds.), Digital Revolution: Challenges for Contract Law in Practice, Nomos, Germany 2016, pp. 19–32 (p. 32).
- 12 Staudenmayer, Digitale Verträge – Die Richtlinienvorschläge der Europäischen Kommission, ZEuP 2016, p. 801 (p. 807).
- 13 Charter of Fundamental Rights of the European Union, OJ C 2000/364, 1 and OJ C 2010/83, 389.
- 14 See scope of the GDPR: GDPR, supra note 4, Art, 2 (1).
- 15 Beale, Scope of application and general approach of the new rules for contracts in the digital environment. In: Website of the European Parliament. http://www.epgencms.europarl.europa.eu/cmsdata/upload/4a1651c4-0db0-4142-9580-89b47010ae9f/pe_536.493_print.pdf [2015], p. 13.
- 16 WP29, Opinion 1/2008 on data protection issues related to search engines [2008], 4 April 2008, p. 9.
- 17 WP29, Opinion 4/2007 on the concept of personal data [2007], 20 June 2007, pp. 16 f.
- 18 Ibid., p. 13.
- 19 EC, Proposal for a Regulation of the European Parliament and of the Council concerning the respect for private life and the protection of personal data in electronic communications and repealing Directive 2002/58/EC (Regulation on Privacy and Electronic Communications) [2017], COM(2017) 10 final, Rec. 17, Art. 4 (3) (c), Art. 6 (2) (c).
- 20 See also: EDPS, Opinion 5/2016: Preliminary EDPS Opinion on the review of the ePrivacy Directive (2002/58/EC) [2016], 22 July 2016, p. 13.
- 21 Opinion 4/2017, supra note 3, p. 12.
- 22 Report A8-0375/2017, supra note 2, p. 18 (Amendment 21); thereby following the suggestion of the EDPS, see: Opinion 4/2017, supra note 3, p. 21.
- 23 Council, Proposal for a Directive of the European Parliament and of the Council on certain aspects concerning contracts for the supply of digital content (First reading) – General Approach [2017], 2015/0287 (COD), p. 8 (Article 3).
- 24 Council, Proposal for a Directive of the European Parliament and of the Council on certain aspects concerning contracts for the supply of digital content (First reading) – Recitals [2017], 2015/0287 (COD), p. 12 (Recital 14).
- 25 For an explanation of the principle of purpose limitation, see: WP29, Opinion 03/2013 on purpose limitation [2013], 2 April 2013, pp. 21 ff.; for an explanation of the principle of lawful processing, see: WP29, Opinion 06/2014 on the notion of legitimate interests of the data controller under Article 7 of Directive 95/46/EC [2014], 9 April 2014, pp. 10 ff.
- 26 Art. 3 (4) Proposal speaks of data «strictly» necessary for the performance, while for the GDPR in Art. 6 (1) (b) just «necessary» suffices. Similarly, Art. 3 (4) Digital Content Proposal mentions «meeting legal requirements», while Art. 6 (1) (c) talks about «compliance with a legal obligation». Presumably, the concepts are intended to be the same, but the different wording could lead to diverging interpretations.
- 27 General Approach, supra note 23, p. 8 (Article 3).
- 28 See: Opinion 4/2017, supra note 3, pp. 14 ff.
- 29 Report A8-0375/2017, supra note 2, p. 54 (Amendment 83).
- 30 See: Opinion 06/2014, supra note 25, pp. 33 ff.
- 31 General Approach, supra note 23, p. 31 (Article 13a); Report A8-0375/2017, supra note 2, p. 76 (Amendment 110).
- 32 This is especially emphasised in the Opinion of the EDPS, which compares the market for personal data to the market for human organs, see: Opinion 4/2017, supra note 3, p. 7.
- 33 Hijmans, The European Union as Guardian of Internet Privacy: The story of Art 16 TFEU, Springer, Switzerland 2016, pp. 54 f.
- 34 See the situation mentioned in: GDPR, supra note 4, Rec. 43; Purtova, The illusion of personal data as no one’s property, Law, Innovation and Technology 2015, p. 83 (p. 87).
- 35 See: Helberger, Profiling and Targeting Consumers in the Internet of Things – A New Challenge for Consumer Law. In: Schulze/Staudenmayer (Eds.), Digital Revolution: Challenges for Contract Law in Practice, Nomos, Germany 2016, pp. 135–161 (p. 150); See also: OECD, Exploring the Economics of Personal Data: A Survey of Methodologies for Measuring Monetary Value [2013], OECD Digital Economy Papers No. 220, p. 17.
- 36 Cohen, Examined Lives: Informational Privacy and the Subject as Object, Stanford Law Review 2000, p. 1373 (p. 1391).
- 37 EDPS, Opinion 8/2016 on coherent enforcement of fundamental rights in the age of big data [2016], 23 September 2016, p. 7.
- 38 Langhanke/Schmidt-Kessel, Consumer Data as Consideration, EuCML 2015, p. 218 (p. 221).
- 39 Dix, Daten als Bezahlung, ZEuP 2017, p. 1 (p. 4).
- 40 See: Preliminary Opinion, supra note 5, p. 6; Opinion 8/2016, supra note 37, p. 6.
- 41 Billen, The Challenges of Digitisation for Consumers. In: Schulze/Staudenmayer (Eds.), Digital Revolution: Challenges for Contract Law in Practice, Nomos, Germany 2016, pp. 11–17 (p. 15).
- 42 See: Opinion 4/2017, supra note 3, p. 17.
- 43 Report A8-0375/2017, supra note 2, p. 17 (Amendment 20).
- 44 Ibid., p. 53 (Amendment 80); General Approach, supra note 23, p. 8 (Article 3).
- 45 Opinion 4/2017, supra note 3, pp. 10 f.
- 46 This could be seen as proclaiming subsidiarity for the Digital Content Proposal with all other Union acts, as noted by: Schmidt-Kessel/Erler/Grimm/Kramme, Die Richtlinienvorschläge der Kommission zu Digitalen Inhalten und Online-Handel – Teil 1, GPR 2016, p. 2 (p. 6); It is even more clearly expressed in an amendment by the Council, see: General Approach, supra note 23, p. 13 (Article 3).
- 47 General Approach, supra note 23, p. 12 (Article 3); Report A8-0375/2017, supra note 2, p. 56 (Amendment 89).
- 48 Council Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts, OJ L 1993/95, 29, Art. 3; Helberger, supra note 35, pp. 145 ff.; Helberger/Zuiderveen Borgesius/Reyna, The Perfect Match? A Closer Look at the Relationship between EU Consumer and Data Protection Law, CMLR 2017, p. 1427 (pp. 1449 ff.).
- 49 Ennöckl, Artikel 2 Sachlicher Anwendungsbereich. In: Sydow (Ed.), Europäische Datenschutzgrundverordnung – Handkommentar, Nomos/Manz/Dike, Deutschland 2017, pp. 239–246 (pp. 240 ff.).
- 50 See as example for smart objects: Helberger, supra note 35, p. 136.
- 51 See: Helberger/Zuiderveen Borgesius/Reyna, supra note 48, p. 1462.
- 52 Both Council and EP limit the definition of «digital content», which according to the original proposal also encompassed services, to the one used in the Consumer Rights Directive 2011/83/EU in Art. 2 (11), and introduce a separate «digital service» definition. These changes do not affect the original scope, but expresses the scope more clearly. See: General Approach, supra note 23, p. 4 (Article 2); Report A8-0375/2017, supra note 2, p. 49 (Amendment 69).
- 53 Report A8-0375/2017, supra note 2, p. 18 (Amendment 21).
- 54 As also the EDPS notes, see: Opinion 4/2017, supra note 3, p. 13.
- 55 Comparably to the provision in the Unfair Terms Directive, see: Unfair Terms Directive, supra note 48, Art. 6 (1).
- 56 See: Helberger, supra note 35, p. 148.
- 57 General Approach, supra note 23, p. 31 (Article 13a); Report A8-0375/2017, supra note 2, p. 76 (Amendment 110).
- 58 Treaty on the Functioning of the European Union, OJ C 2012/326, 47.
- 59 Hijmans, supra note 33, p. 4.
- 60 Treaty on European Union, OJ C 2012/326, 13.
- 61 Hijmans, supra note 33, p. 20.
- 62 Opinion 4/2017, supra note 3, p. 8.
- 63 Directive 2011/83/EU of the European Parliament and of the Council of 25 October 2011 on consumer rights, amending Council Directive 93/11/EEC and Directive 1999/44/EC of the European Parliament and of the Council and repealing Council Directive 85/577/EEC and Directive 97/7/EC of the European Parliament and of the Council, OJ L 2011/304, 64.
- 64 Directive 1994/44/EC supra note 9.
- 65 A good overview of the consumer law instruments in the EU can be found in the recent Fitness Check of the European Commission, see: EC, Commission Staff Working Document – Report of the Fitness Check on Directive 2005/29/EC (…); Council Directive 93/13/EEC (…); Directive 98/6/EC (…); Directive 1999/44/EC (…); Directive 2009/22/EC (…); Directive 2006/114/EC (…) [2017], SWD(2017) 209 final.
- 66 Directive 2002/58/EC of the European Parliament and of the Council of 12 July 2002 concerning the processing of personal data and the protection of privacy in the electronic communications sector (Directive on privacy and electronic communications), OJ L 2002/201, 47, Rec. 2.
- 67 Draft e-Privacy Regulation, supra note 19, Rec. 4.
- 68 Preliminary Opinion, supra note 5, p. 33; supplemented by: Opinion 8/2016, supra note 37, pp. 8 ff.
- 69 Helberger, supra note 35; Helberger/Zuiderveen Borgesius/Reyna, supra note 48; more critically, but seeing some value: Gonzáles Fuster, How uninformed is the Average Data Subject? A Quest for Benchmarks in EU Personal Date Protection, Iniciativa Digital Politècnica 2014, p. 92 (p. 102).
- 70 Langhanke/Schmidt-Kessel, supra note 38, p. 219.
- 71 Langhanke/Schmidt-Kessel, supra note 38, p. 220.
- 72 Ibid., p. 221.
- 73 Ibid., p. 221.
- 74 Report A8-0375/2017, supra note 2, p. 63 (Amendment 99).
- 75 See Wendehorst, Sale of goods and supply of digital content – two worlds apart?. In: Website of the European Parliament. http://www.europarl.europa.eu/cmsdata/98774/pe%20556%20928%20EN_final.pdf [2016], pp. 14 f.; Spindler, Contracts For the Supply of Digital Content – Scope of application and basic approach – Proposal of the Commission for a Directive on contracts for the supply of digital content, ERCL 2016, p. 183 (pp. 194 f.).
- 76 See: Helberger, supra note 35, pp. 147 ff.
- 77 See: Helberger/Zuiderveen Borgesius/Reyna, supra note 48, p. 1459.
- 78 Report A8-0375/2017, supra note 2, p. 86 (Amendment 121).
- 79 The author would like to thank Prof. Christopher Kuner (VUB) and Prof. Gloria González Fuster (VUB) for their helpful comments and suggestions to the various drafts.