Data Protection in Denmark

Enforcement in Denmark

EU regulation

Fines

The GDPR empowers supervisory authorities to impose fines of up to 4% of annual worldwide turnover, or EUR 20 million (whichever is higher).

It is the intention of the European Commission that fines should, where appropriate, be imposed by reference to the revenue of an economic undertaking rather than the revenues of the relevant controller or processor. Recital 150 of the GDPR states that 'undertaking' should be understood in accordance with Articles 101 and 102 of the Treaty on the Functioning of the European Union, which prohibit anti-competitive agreements between undertakings and abuse of a dominant position. Unhelpfully, the Treaty does not define ‘undertaking’ and the extensive case-law is not entirely straightforward, with decisions often turning on the specific facts of each case. However, in many competition cases, group companies have been regarded as part of the same undertaking. The assessment will turn on the facts of each case, and the first test cases under the GDPR will need to be scrutinised carefully to understand the interpretation of ‘undertaking’. Under EU competition case-law, there is also precedent for regulators to impose joint and several liability on parent companies for fines imposed on those subsidiaries in some circumstances (broadly where there is participation or control), so-called "look through" liability. Again, it remains to be seen whether there will be a direct read-across of this principle into GDPR enforcement.

Fines are split into two broad categories.

The highest fines (Article 83(5)) of up to EUR 20 million or, in the case of an undertaking, up to 4% of total worldwide turnover of the preceding year, whichever is higher, apply to infringement of:

  • the basic principles for processing including conditions for consent;
  • data subjects’ rights;
  • international transfer restrictions;
  • any obligations imposed by Member State law for special cases such as processing employee data; and
  • certain orders of a supervisory authority.

The lower category of fines (Article 83(4)) of up to EUR 10 million or, in the case of an undertaking, up to 2% of total worldwide turnover of the preceding year, whichever is the higher, apply to infringement of:

  • obligations of controllers and processors, including security and data breach notification obligations;
  • obligations of certification bodies; and
  • obligations of a monitoring body.

Supervisory authorities are not required to impose fines but must ensure in each case that the sanctions imposed are effective, proportionate and dissuasive (Article 83(1)).

Fines can be imposed in combination with other sanctions.

Investigative and corrective powers

Supervisory authorities also enjoy wide investigative and corrective powers (Article 58) including the power to undertake on-site data protection audits and the power to issue public warnings, reprimands and orders to carry out specific remediation activities.

Right to claim compensation

The GDPR provides specific provisions for individuals to bring private claims against controllers and processors:

  • any person who has suffered "material or non-material damage" because of a breach of the GDPR has the right to receive compensation (Article 82(1)) from the controller or processor. The inclusion of “non-material” damage means that individuals will be able to claim compensation for distress even where they are not able to prove financial loss.
  • data subjects have the right to mandate a consumer protection body to exercise rights and bring claims on their behalf (Article 80).

Individuals also enjoy the right to lodge a complaint with a supervisory authority (Article 77).

All natural and legal persons, including individuals, controllers and processors, have the right to an effective judicial remedy against a decision of a supervisory authority concerning them or for failing to make a decision (Article 78).

Data subjects enjoy the right to an effective legal remedy against a controller or processor (Article 79).


Denmark regulation

The DPA is responsible for the supervision of all processing operations covered by the Danish Data Protection Act.

The DPA can request any information provided necessary for the DPA’s operations including decision-making on whether the Danish Data Protection Act and the GDPR apply or not.

The DPA and its personnel can without a court order request access to premises from which processing of personal data is performed.

The DPA’s decisions are final and not subject to recourse (but may be brought before the courts in accordance with the rules for civil law suits).

The DPA may investigate data processing occurring in Denmark and the legality thereof, despite the processing being subject to foreign law.

The DPA may publish its findings and decisions.

Any person suffering material or nonmaterial damage due to non-legal data processing can claim damages.

Unless a higher penalty is impeded, processing deemed unlawful under the Danish Data Protection Act, is sanctioned with a fine or prison for up to six months.

In general, the GDPR aims to sanction with fines which are effective, reasonable and have preventive effect. More specific, certain violations can be sanctioned with a fine of a maximum of EUR 10,000,000 or 2% of the total annual turnover (if a company). Other types of violations can be sanctioned with a fine of a maximum of EUR 20,000,000 or 4% of the total annual turnover (if a company).

The statute of limitation period is five years.

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